Understanding the CRA Notice of Collection and Your Options

The Canada Revenue Agency (CRA) is primarily responsible for administering federal taxation laws. Alongside, the CRA also oversees several social and economic benefits disbursed through the tax system. One of the ways they communicate with citizens is through a Notice of Collection. This article will delve into what a CRA notice of collection is and provide options to deal with it through the CRA's website, mobile app, and call centre.

What is a CRA Notice of Collection?

A CRA notice of collection is a legal notice the agency sends to inform taxpayers of an outstanding tax liability. The notice indicates the tax amount due, including interest and potential penalties. It also delineates your rights and options to handle the outstanding debt. It's crucial to understand that this is a legal demand for payment and should not be underestimated.

Addressing the Notice through CRA's Website

The CRA's online platform, 'My Account,' is your primary gateway to an array of services. By logging into your account, you can access the details related to your Notice of Collection.

• Once logged in, you can navigate to the 'Account balance and statement of account' tool. Here, you can find your balance details, payment history, and installments.
• For creating your payment plan, you can select 'Payment arrangements.' You can orient your payment schedule according to your financial situation.
• For immediate payments, utilize the 'Pay now' option and follow the guided steps.

Using the CRA mobile app

As we increasingly rely on smartphones for everyday tasks, the CRA has adapted to this change as well. Their official mobile app, 'MyCRA,' is designed to provide taxpayers easy access to vital information and services.

• The 'Account balance' section provides you with your current tax balance, including any interests or penalties.
• It also lets you analyze your Tax Free Savings Account (TFSA) contribution room, RRSP deduction limits among others.
• For those looking to transact directly through the app, it offers the convenience of making payments via inter-bank transfer, credit card, PayPal, or Interac e-transfer.

Contacting the CRA Call Centre

If you prefer a more direct, personal approach, the CRA call centre can be a viable option. Their Income tax enquiry line can help clarify any doubts you have about your Notice of Collection.

• To ask about your payment options, you can dial the CRA's collections contact number.
• If you are unable to pay the due amount, the call centre can guide you through their 'Unable to Pay' option and help determine a convenient payment plan.
• Apart from payment-related enquiries, you can also get answers to basic tax-related questions, status of your tax refund, etc.

Conclusively, it's in your best interest to address any Notice of Collection immediately. Whether you choose to handle the matter through the website, mobile app, or a direct phone call, understanding your options and acting promptly can help prevent additional charges and keep your financial health intact.