Many personal and corporate tax returns are now completed without difficulty with the use of the Canadian Revenue Agency’s EFILE program adopted ten years ago. EFILE is an electronic data exchange for professional tax preparation. There are CRA certified tax reporting softwares for individual taxpayers, which include NETFILE, Intuit’s Profile, and Microsophic Inc.’s Visual Tax.The CRA reported that an impressive 80% of Canadians had their 2013 returns filed electronically by professional preparers, or they personally filed their returns utilizing tax reporting software.
This most likely means 20% of Canadians had special tax reporting situations, such as Canadians living abroad. Though it may seem like a small number, twenty percent translates into huge numbers of taxpayers. Included in those numbers are taxpayers with ongoing tax problems who may have avoided paying taxes for years, are behind in tax fines, have special tax liability situations, or have disputes with the CRA over reviews, reassessments, audits, and final determinations. Certainly, business owners have a heads-up about the current tax year because profits/losses are a business’s success or failure. A business has to file a tax return every year, even in failure.
For taxpayers strapped with tax reporting that requires more than the usual simple return, that requires priority attention to evade significant liability, subsequent garnishments or bank freezes, or that requires seasoned experience in tax dispute resolution, here are three helpful tips:1. If not already convinced, seek professional consultations that usually are free.2. Resource and select a tax firm with a proven track record and a true interest in achieving the best result possible for clients.3. Relax knowing whatever the outcome, it will be the best possible solution given the circumstances.
Placing troublesome tax reporting in the hands of a seasoned tax firm could mean a smile – and a long sought-after good night’s sleep, too. It could also mean the difference between a jail sentence and freedom.What complicates the refusal of a taxpayer to acquiesce and take a lone ranger position during a CRA audit or investigation is the upheaval of that taxpayer’s life because of, perhaps, an overzealous rookie CRA agent. There are some situations when attempting to prove credibility that should not be tackled – even if a taxpayer is familiar with CRA rules and guidelines. A failure to prove innocence and, in desperation, an untimely retention of a tax professional with the right expertise, could prove disastrous and expensive. Timing is key in defending against audits and criminal investigations as well. Tax experts will stress this point during consultations. If innocent, why wait? The CRA has a motto regardingstepping forward right away. “Come see us, before we go to you.”
Because of the Canadian taxing system’s breadth of guidelines and changing regulations and rulings, tax accounting firms and tax specialty firms, such as Tax911 Now!, are a recognized commonalty. They keep abreast with changing CRA rules and regulations and provide the most effective interface with individual taxpayers and small to medium size businesses faced with complicated to more serious tax problems. The CRA is familiar with these tax firms for their expertise and effective consultancies in cases before the CRA. So when tax time comes around, be sure to get the best tax preparation help in Toronto (or in the city where you live), and leave it in the hands of the experts!