Why You Should Always File Taxes on Time

Given the time and inconvenience, not to mention the money that a late filing of your taxes will inevitably bring, it is crucial that businesses, as well as individuals, file their taxes on time and correctly. This is one reason that using a professional and trusted tax firm can be so critical to navigating the complex world of taxes successfully. The types of tax problems that can result from a late filing under Canadian law can be severe and tough to deal with. The silver lining is that these issues can easily be avoided simply by trusting a professional to guide you through the process of filing your taxes on time and correctly.

The financial penalties that will come with a late tax filing will be five percent of the entire outstanding tax bill, plus an additional one percent penalty for every month your filing is late. Due to certain rules, the maximum financial penalty can be a full seventeen percent of your total balance. To illustrate just how costly this can be, a seventeen percent penalty on a C$22,000 tax bill will equate to a penalty of C$3,740. In addition to this penalty, you will pay interest as well. Such a penalty can be crippling both to an individual and to a small business. By utilizing a professional tax firm, you can avoid this fate as tax accountants know the law and the deadlines, and they will help ensure timely filing and payment.

In addition to timing issues related to the filing of taxes, there are many other potential tax problems that can plague those who do not seek professional help regarding their taxes. One of the most common mistakes nonprofessionals make when filing their taxes is the double reporting of income. Another common mistake is to not report any capital losses you or your business suffered. Many deductions that are allowed under Canadian Law and that are also quite lucrative fly under the radar of most nonprofessionals as well. These include the ability to deduct the cost of any safety deposit boxes, moving expenses and more. Common mistakes like these cause tax payers to overpay. By hiring a local tax professional who you trust, such as the team at Tax911 Now! (learn more about tax returns at http://tax911now.ca/unfiled-tax-returns-to-cra/)you ensure that none of the above mistakes will made when your taxes are filed.

A further benefit that individuals and business owners can reap when they make use of the services of a professional tax firm is that your taxes will be prepared and filed much quicker due to their expertise. This means that you will receive any refund you are owed as quickly as possible. In 2012, the average refund amounted to almost C$1,700, which is a significant amount of money to miss out on. Although it is true that the Canadian Revenue Agency does pay interest on any returns owed, this interest does not start accruing until thirty days after the return is filed and the April 30 due date. The quicker your filing, the quicker you will get your refund. In summation, taxes can be tricky and the numerous tax problems that can arise from even unintentional errors will be severe; so avoid these headaches today by hiring a professional tax team to handle your taxes.