Hey man, no judgement. This post is coming from a girl who has been late to school or work her entire life. No matter the effort I put in, (three alarm clocks, setting the time wrong, leaving early) I will be rushing in 5-30 minutes after a lecture has started or a boss has come in.
So if you’re in the same situation with your taxes – I understand! It sucks, you definitely should have gotten that shiz together sooner, but we will work through the consequences.
Here’s what can happen:
You need to file your taxes by APRIL 30th, or JUNE 15 if you are a sole prop freelancer. That means the CRA has to receive your money ON the deadline or, if you’re mailing a cheque the postmark on the enevelope needs to be ON the deadline. The CRA is not as generous as my teachers/bosses are. Think of it like a German mother-in-law. She does NOT find it amusing when you are late. She is sitting in an armchair WAITING for you to arrive, decked out in a perfectly put-together outfit, I assume with nude pantyhose and sensible shoes, her lipstick on, the rolls are out of the oven and YOU HAVE NOT ARRIVED.
- The penalty for filing late is 5% of your balance owing
- The penalty for paying late is 1% of your balance owing for up to 12 months
That’s 5% PLUS 1%!
- The penalty for filing late is 10% of your balance owing
- The penalty for paying late is 2% of your balance owing for up to 20 months
Everything just got doubled!!
- Even if you can’t pay your taxes, FILE YOUR TAXES
- Remember that the penalties are separate for filing late and paying late. You will avoid at least one of those penalties if you file on time!
- Contact the CRA. You may be able to arrange a payment plan or a debt relief program. Do not ignore the problem. It will not go away.
Is there hope for fees I’ve already paid?
- You may be able to get these fees waived by completing Form RC4288: Request for Taxpayer Relief
You’re less likely to be late on filing taxes if you are organized, know how to track your expenses and income and know how much you need to be saving throughout the year for taxes. Take our online course TRACK THAT SHIZ so you’ll never be in this situation again!