question on taxation year(s)

Thanks propat. Won't be long now.

well sparrow its normally done just before you do your tax however you should be able to call them after you get your worksheet and get them to review it but ya might want to wait till at least may lol.im not sure if anyone outside myself asked so i hope he reads it and agrees.it would be a big bonus to have these penelties illiminated.

propat

Thanks Propat. Couple of thoughts. If we are having our taxes done by an accountant is that when we advise CRA to do the calculations both ways? Not sure at what point we would request CRA to do that. Also, is there any update on whether a letter from the Judge for Request For Taxpayer Relief is in the works or is this something that needs to be brought up on Feb 14th. Thanks again. It is so nice when everyone gets along
Sparrow

sparrow it will all depend on your situation but the easy answer is if you have no other concernes CRA will do the calcs for you and tell you witch is cheeper.however their is so many variables like entitlements,programs,divorse settlement,bankruptcy,ect,ect,ect.one size might not fit all.but if you have no other concerns what CRA picks for you would be the best.i just hope we get a letter from the judge and our REQUEST FOR TAXPAYER RELIEF forms get accepted by the CRA then its a no brainer.

propat

Thanks Propat. What do you think is the best route to go all in this year or over the past years?
Sparrow

ok puddles just got off the phone with cra now im not sure the lady understood the question but i did ask her 6 times and she responed consistintly with all in past years ore all in this year.she was verry nice and helpfull but im going to try again this aft just to doubble check.

propat

actually you will need your worksheet and i would throw in a copy of the judges decission and hopefully a brief from the judge if its forthcomming as i asked for that.

then fill it out and send it in soonest so you will have an answer one way ore another before the 2013 tax year dedline 30 april 2014.

propat

So, my question, is do I file the form NOW, or do I wait until I do my taxes next year?

little info

In 2007, Canada Revenue Agency (CRA) issued a comprehensive Information Circular IC 07-1 to advise tax-payers of when and how they can ask for relief from the normal collection, re-filing or refund provisions of the Income Tax Act.

Knowledge of these rules can be extremely helpful to taxpayers who owe or potentially owe significant amounts of money to CRA or are looking to obtain refunds that they are otherwise statute barred from receiving. The Circular deals with four main areas:
•Request for taxpayer relief - cancellation or waiver of interest and penalty charges.
•Filing a voluntary disclosure to eliminate penalties on unreported income.
•Obtaining refunds beyond the three-year limit normally allowed.
•Filing, amending or withdrawing special tax elections beyond permitted time limits.

The Minister does not have to grant relief in any of the above areas and each request will be reviewed by CRA and decided on its own merit. If CRA denies an adjustment, they will also provide the taxpayer with an explanation of the reasons for their decision. A second appeal to the local tax office is sometimes beneficial.

Time Allowed for Application

The Minister may grant relief for any tax year that ended within 10 years before the calendar year in which the taxpayer’s request is filed. Therefore, a taxpayer has 10 years from the end of the calendar year in which the tax year ended to make a request to the CRA for relief. This 10-year limitation period rolls forward every January 1. Relief from interest charges relating to tax matters that arose more than 10 years ago will not be allowed. Cancellation of interest refers to the elimination of interest already accrued, whereas a waiver of interest refers to cancellation of future interest charges.

Request for Taxpayer Relief

In determining whether to waive or cancel interest charges, CRA will consider a number of factors:
•Whether the taxpayer has a history of compliance,
•Whether the taxpayer knowingly allowed a balance to exist on which interest has accrued,
•Whether the taxpayer has exercised reasonable care and has not been negligent or careless in filing tax returns,
•Whether the taxpayer has acted quickly to remedy any delays or omissions.

Taxpayer relief for interest (and less often penalties) may be warranted in the situations outlined by CRA as follows:
•Extraordinary circumstances,
•Natural or man-made disaster,
•Death/accident/serious illness/emotional or mental distress,
•Civil disturbance,
•CRA actions,
•CRA error,
•CRA delay,
•Inability to pay, and
•Financial hardship / inability to pay.

The request for relief is normally applied for using form RC4288E, accompanied by a detailed supporting submission and backed up by appropriate documentation. A taxpayer can make this application based on any one or more than one of the situations.

Extraordinary circumstances apply for reasons beyond the taxpayer’s control. For example, the inability to file a tax return because of serious illness, accident or serious emotional or mental stress all qualify.

Actions caused by CRA would include such things as processing delays, undue delays in resolving an objection or appeal, or completing an audit. Errors in material available to the public from CRA or incorrect information provided to a taxpayer also qualify as a CRA action that cause interest to be payable.

The inability of a taxpayer to pay or financial hardship can involve several different situations. The Circular lists the following examples:
•Where a collection has been suspended due to an inability to pay;
•Where a taxpayer can show that the inability to pay requires an extended payment arrangement;
•When payment of accumulated interest would cause a prolonged inability to provide the basic needs of life such as food, medical assistance, transportation, shelter, etc.


propat

i see your point puddle but the form only takes about 10 minuets to fill out so im gona fire one off to them anyway.what can they say?no?

propat

i have only had bad dealings with cra,

from one mistake as to my marital status five years ago,

i had sent the cra the required update, they didnt update the mistake,

this resulted in four years and eight inches of paperwork, and three separate submissions to the chief of appeals over those years to correct what should have been a pen or key stroke in correcting the problem..

my applying for taxpayer relief when I expect none to be given is a pointless exercise and stressful going off of what they have shown for professionalism.

ya we get the shaft either way im gona try the reqest for taxpayer relif route first and go from there.

propat

oh well, worth the extra question or thought of it,

to claim the amount, no matter how small it was over the entire time i am owed will be too much in penalties,

and if i claim it all in this calendar year, the increased amount will hold premium taxes that will be very similiar..

as a matter of fact im verry sure.

propat

buds i dont think you can devide it into thirds ore halves.

propat