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What Happens If You Owe The CRA Money: Exploring Options

If you find yourself owing money to the Canada Revenue Agency (CRA), the situation can feel overwhelming. Yet, you are not alone and there are several options available to you. In this article, we will explore how to approach this, what happens, and the different access points available: website, mobile app, and call centre. Each will be broken down to help you decide which method is the most convenient for you.

Understanding What Happens If You Owe The CRA

Firstly, it's important to know what happens when you owe money to the CRA. If you have a balance due and fail to pay it by the deadline, the CRA will charge you a penalty. The initial penalty is 5% of the balance due, with an additional 1% charged for each full month that the return is late, up to a maximum of 12 months.

Option 1: Using the CRA Website

The CRA website is the most common and user-friendly option to manage your debt. It is accessible 24 hours a day and offers a wide range of services. By logging into your account, you can review your balance, make payments, setup a payment plan, and more.

You can also access information about your tax return, benefits, credits, etc. Remember, safety is paramount. Always ensure you are on the authentic CRA website and your personal details are secure when transacting online.

Option 2: Utilizing the CRA Mobile Application

If you're a tech-savvy individual, leveraging the CRA mobile app may be your preferred method. The CRA Business Tax Reminders mobile application is available for iOS, Android, and Blackberry devices. It allows users to create custom reminders and alerts for key CRA due dates related to instalment payments, returns, and remittances. This way, you are always updated and avoid any late payment penalties.

Option 3: Engaging with the CRA Call Centre

If you prefer a more personalized service or have specific questions, the CRA call centre is the option for you. The call centre representatives are able to provide direct, comprehensive, and individualized information about your tax status and next steps. They can also guide you through setting up payment plans if needed. Be prepared to verify your identity when opting for this method.

Conclusion

While owing money to the CRA can certainly feel daunting, it's important to remember that the agency is usually willing to work with taxpayers to resolve outstanding tax bills. Whether you prefer the ease and 24/7 accessibility of the website, the smartphone convenience of the mobile app, or the personal touch of a call centre, each option has its benefits and functions. Determine which works best for your situation and take the appropriate steps forward.

Lastly, if you are unsure of handling the situation on your own, professional tax services are also available to help you navigate the complexities of dealing with the CRA.