What Happens When Cra Freezes Your Account
What Happens When CRA Freezes Your Account and Your Available Options?
In today's digital age, tax-related issues can be daunting, especially when it involves the Canada Revenue Agency (CRA). One alarming scenario is to find out that your account has been frozen by the CRA. When this happens, it means your financial situation has become more complicated, and quick measures need to be taken. Let's navigate this process with you, highlighting what goes on and the options available for you via website, mobile app and call centre.
Understanding Why the CRA Freezes Accounts
The CRA can freeze your account due to several reasons such as unpaid tax debt, suspected fraudulent activity, or lack of cooperation during an audit. It’s crucial to understand that the CRA's ultimate goal isn't to punish you but to ensure compliance with tax regulations.
Impact of a Frozen Account on You
A frozen account impacts your ability to wire or transfer funds and restricts you from withdrawing from it. During this period, you might not access your wages, rent or mortgage payments, and any outstanding cheques may bounce.
Options to Rectify the Situation
If the CRA freezes your account, rest assured. You have three main options to rectify the situation: using the CRA's website, mobile app, or call centre.
Option 1: Using CRA’s Website
You can initiate the process of unfreezing your account directly from the CRA website. Here's how:
- Log in to your CRA account.
- Check the account status to confirm whether it's frozen, and if yes, check the indicated reason.
- Follow the prescribed steps provided, usually resolving the tax issue or dispute related to the freezing.
- If necessary, you may be directed to upload some documents or proof of payments.
Option 2: CRA’s Mobile App
The CRA also has a functional mobile app - MyCRA, which can be key in resolving your account freezing issues. Here's how:
- Download the MyCRA mobile app from either Google Play or the App Store.
- Access your My Account features, review your current tax year details, make adjustments if necessary, and upload any documents required.
- Use the mobile app to update your contact information to receive necessary communications about your frozen account.
- Once the issue is resolved, monitor your account status via the app.
Option 3: CRA Call Centre
If you are not tech-savvy, the CRA call centre might be the suitable option. Here's how:
- Call the CRA helpline and get directed to a representative for assistance.
- Explain your situation, provide necessary information and follow the instructions given to resolve the issue.
- Keep recording of all calls and keep a copy of all mails exchanged for future reference.
In Conclusion
Having your account frozen by the CRA can be distressing, mainly due to the interruption it causes to your financial wellbeing. However, knowing what to do when this happens can help to alleviate your worries. Whether you choose to use the CRA website, mobile app or call centre, the ultimate goal is to cooperate promptly with the CRA, resolve the underlying issues and regain control of your account.