Let’s be clear: late filing is never a situation where a business should desire to find itself. But being late on taxes is normal. It is an ordinary happening. Therefore, no matter how late you are on taxes, get your business back on track today because the penalties for late filing are always less severe than not filing at all. However, late filing can still significantly impact your business.
The process for late filing is hardly any different from timely filing.
Nonetheless, the following is a detailed discussion of what documents you need to do the late tax filing for your business:
Your business’s financial statements are essential for submitting your text returns. Because they state your profit and loss balance sheet and cash flow statement for the tax year. In addition, you need them for the Canadian Revenue Agency to assess your tax accurately. Therefore, while preparing your file, make sure you have in your hand the financial statements for previous years.
These documents include the details of purchases, utilities, rent, salaries, and other business expenses. Notably, providing this record of expenses will help the Canadian Revenue Agency calculate the liabilities due. Moreover, you should gather these slips for all the years the tax is due.
Most financial transactions nowadays take place through banks. Therefore, it will be mandatory for you to provide the Canadian Avenue agency with bank statements to give an idea of the inflows and outflows of funds for the proper assessment of taxes and any waivers, if applicable.
Depending on the structure of the business, you will submit different tax forms. The most critical types of forms that can be vital are the following:
If you earn income from investments or other sources, you can get these slips from the organization with which you are dealing.
Payroll records detail wages, bonuses, and any deductions made for your business employees’ pensions throughout the year. Logically, this record is also essential for appraisal.
Capital assets are the properties that your business owns, such as property, vehicles, or equipment. For all the years the tax has been due, you will have to submit these documents. Similarly, you will also provide the agency with the record of your purchases, depreciation, and disposal so they can access the agency to calculate your tax.
It is possible that there has been any correspondence between you and the Canadian Revenue Agency. In that case, you must attach the related correspondence files, documents, or letters with your tax file so that the agency can assist you with the procedure and any waivers or concessions you claim.
You can make any adjustments using the Canadian Revenue Agency’s Refile service for online filing; otherwise, you can download the “T1-ADJ” form, make the T1 adjustment request and email it to the CRA.
Consider filing online: According to the Canadian Revenue Agency, 95% of Canadians now use online means to file in Texas.
The Canadian Revenue Agency advises– it is more secure, quick, and efficient.
Thirdly, the revenue agency has recommended some software for online filings, such as refile, auto-fill my return, and Express NOA.
Fourthly, if you want to file for a waiver or tax relief, you need to complete form “RC4288.”
Fifthly, for online filing, ensure you have your Social Insurance number. It shows up on the right side of the last notice of assessment.
Sixthly, if you are late by multiple years, make your submission for the earliest Year first, as it may entitle you to carry forward some of the expenses from those years to the recent year, reducing your tax burden in this way.
