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Overview: How Long Can the CRA Freeze Bank Accounts and What Are Your Options?

The Canada Revenue Agency (CRA) has the power to freeze bank accounts if you owe unpaid taxes. However, most Canadians are unsure about how long the CRA can freeze their bank accounts and the process they should follow after. Here is everything you need to know about this process and how you can navigate this situation using different avenues such as the CRA website, mobile app, and call centre.

How Long Can the CRA Freeze Bank Accounts?

The length of time that the CRA can freeze a bank account largely depends on the amount of debt and the debtor's responsiveness. Typically, if you owe money to the CRA and if you are not taking necessary actions to resolve the issue, the CRA may freeze your bank account indefinitely until the debt is paid off or a payment arrangement is set.

Interacting With the CRA Through Their Website

If you find your bank account has been frozen, the first available medium to get necessary information is through the official CRA website. The CRA website is user-friendly and contains a wealth of information on tax laws, obligations, and your rights as a taxpayer.

Navigating the CRA Mobile App

Another convenient option to interact with the CRA is through their mobile application, called MyCRA. Using this app, you can access your tax information, check your TFSA contribution room, set a payment plan or even file a dispute. You can also update your address, phone number, and review correspondence sent to you by the CRA.

Reaching Out to the CRA Call Centre

Finally, the CRA also has a dedicated call center for taxpayers to discuss any issues or questions. This is a great resource for immediate assistance. The agents at the call center can walk you through necessary steps, and provide specific instructions tailored to your situation.

Next Steps to Lift the Freeze

Action Through the CRA Website

After logging in to your account, one of the first steps that can be taken is reviewing your outstanding tax balances. From there, set up a pre-authorized debit agreement to pay off the outstanding amount. If done successfully, CRA might lift the freeze on your bank account.

Benefits of the CRA Mobile App

While the MyCRA app doesn't currently support payment transactions, it does provide useful insights into your tax account. You can review your debt details, apply for relief provisions. This information can help you plan a better payment arrangement and could potentially expedite the process of bank account unfreezing.

Getting Assistance from the CRA Call Centre

For those who prefer personal interaction, reaching out to the CRA Call Centre can be a handy resource. At the call center, a representative can help you set up a payment arrangement based on your financial situation. Once your payment arrangement is approved and upheld, the CRA can remove the freeze on your bank account.

Key Takeaways

Understanding how the CRA operates and how you can interact with them can significantly ease the process of resolving your tax issues. As a taxpayer, it’s important to take significant steps as soon as you notice a freeze on your bank account. And with the use of the CRA website, mobile app, or call center support, you can potentially reduce the length of time your bank account remains frozen.