Filing Your Taxes Late
Tax season is quickly coming to an end on April 30th. If you have already successfully filed your taxes before the deadline then this blog is not meant for you. If you are a procrastinator and haven't sent in your return yet - keep reading!
As listed above, most Canadians Income tax and benefit returns are due by Monday, April 30th. Individuals with self-employed incomes, spouses or common-law partners that garnered self-employed earnings in 2018 have until Saturday, June 15th to file. Any self-employed workers have until June 15th to file as well, but they must pay any balance owing by April 30th. Since June 15th lands on a Saturday this year, those filing before that date have until Monday, June 17th.
Let's say you have a balance owing for 2018, the CRA charges compound daily interest starting on May 1st, 2019 for any unpaid amounts that you may owe. This also includes any balance owing if the CRA reassess your return.
If your balance is zero or if you're getting a refund you shouldn't stress because you won't be given any penalties for filing late. If you do have a balance owing, you could be looking at a large penalty. Your penalty would include five percent of your balance owing plus one percent of your balance owning for each month that your return is overdue. If you always seem to be filing late and have already been charged the penalty in the last three years then you now owe ten percent of your balance owing, two percent of your balance of each month that your return is overdue up to twenty months.
What can you do?
In some cases you can actually ask the Canada Revenue Agency (CRA) to waive or cancel late filing penalties if the reason you filed your return was because of circumstances out of your control. To request a waiver you will have to complete a specific form that includes details on what the specific circumstance was and if it justifies the late filing. Click here to see form.
Melanie Gesy Professional Corp. is here to help! Call 780-995-5236 today.