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Introduction

Pay in time or face the music—that’s the unspoken policy of the Canada Revenue Agency (CRA). But, what exactly happens if you fail to pay CRA installments? In this article, you'll get all the answers. Also, this article provides information about options you have if you struggle with your payments. We will cover three most common ways to handle issues with CRA: the official CRA website, mobile app, and call centre.

The Consequences of Not Paying CRA Installments

Failing to pay your CRA installments can lead to major financial and legal consequences. The CRA charges compound daily interest on any outstanding installment payments. Besides, the CRA can also issue wage garnishments, place liens on your property, or seize your assets to recover the unpaid tax debt. In severe cases, legal proceedings could begin, which might result in prosecution and even imprisonment.

Navigating the CRA Website for Installment Payment Issues

The CRA website provides a wealth of resources for dealing with installment payment issues. You can log in to your My Account on the CRA website where you can view your tax information, balance owing, and payment history. There, you also have the option to set up a pre-authorized debit agreement, which could help ensure that your future payments are made on time. If you are unable to pay in full, you can negotiate a payment arrangement with the CRA directly through their website.

Using MyCRA Mobile App for Monitoring and Payments

The MyCRA mobile app is a handy tool that lets you access key portions of your tax information right from your smartphone. With it, you can make payments through pre-authorized debit, and check your payment history and balance owing. This offers the convenience of managing tax matters on the go and reduces the chances of missing installment payments.

Contacting CRA Call Centre for Assistance and Options

Lastly, you can also contact the CRA call centre where you can discuss your inability to pay, ask for additional advice or even negotiate a payment arrangement. You may wish to prepare yourself for this conversation by gathering relevant financial information to present your case more effectively. The CRA is known to work earnestly with taxpayers who make an effort to resolve their payment issues.

Conclusion

While not paying your CRA installments on time may have serious repercussions, the CRA provides multiple platforms for taxpayers to reach out and handle their tax issues. Whether through the CRA website, MyCRA app, or contacting the CRA call centre, each method provides its own unique merits and can help you manage your installment payments effectively.

In all scenarios, open communication and proactive engagement with the CRA is fundamental to navigating through such financial obstacles. Don’t evade or ignore your tax responsibilities; instead, face them head-on, and make use of the help that the CRA readily provides.