What To Do If You Miss the Tax Filing Deadline

There are many deadlines in life, but none are as frightening or consequential as April 30^th. The April 30^th tax filing deadline is the bane of taxpayers everywhere. Missing it can cause you both penalties and angst. Hopefully, you will never miss the tax filing deadline, but if you do, here are the steps that you need to follow.

Gather Up Your Documents

When you are under the gun and rushing to finish your taxes, it is all too easy to forget about a form or omit important information. The rush to file has ensnared many a taxpayer and triggered more than a few audits along the way.

Leaving information off your tax return or reporting the wrong amounts of income are big red flags for the CRA. It can result in very large penalties and interest charges. So, gather up your documents and make sure that what you file is accurate and complete.

Finish What You Have

Finishing and filing your taxes a bit late is still a lot better than not filing them at all. The CRA does track people that have not filed and will send you mail demanding that the overdue returns be filed. If you still do not file, you will probably get a phone call from them. So, filing a bit late is better than not filing at all. If you do file a return with an error, you can correct it to avoid the terrible penalties as long as it is corrected quickly.

Pay Any Tax Due Promptly

The fact that you are filing late does not mean you will not have to pay the taxes you owe. If the bottom line reveals a tax liability, you should pay that amount as soon as possible.

If you fail to settle up with the CRA, you will face additional interest for your late payment. The interest rate being charged right now is 8{9de21fd12e8ca6488972186bbb5fe81becd95b7b490974f1f8badcf668439b39}. The interest clock starts ticking on the tax filing deadline, so every day you wait to pay will be costing you yet more money.

Follow Up as Your Tax Return is Processed

Once your tax return has been filed, you should follow it through the process, ensuring the return is accepted by the CRA and eventually finalized. The CRA provides a number of tools that make it easy to track your return, so make sure everything is in order before you start relaxing.

About the Author: Gerald Hunt

After graduating from the University of Calgary with a Bachelor of Science degree in Computer Science, Gerald joined KPMG (Formerly Thorne Riddell) as a Computer Accounting Customer Service representative. In this position, Gerald installed accounting systems in over 200 different small to medium sized companies over a 6 year span. In 1989, Gerald left KPMG to continue to work with small business clients in his own corporation installing computer accounting systems. While in this role, he was engaged by the DeVry Institute of Technology in Calgary to teach various courses. In time, Gerald moved up through the ranks of DeVry until he attained the position of Director of Finance for the Calgary Campus. He also acquired his Masters of Business Administration from City University of Seattle, Washington in 2001. Gerald’s career has always been focused on small business, accounting and education.

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