Navigating the complexities of late and back taxes can be a daunting task for Canadian residents and businesses alike. Bomcas Edmonton, a distinguished accounting and tax consulting firm, specializes in resolving such tax troubles. Based in Sherwood Park and Edmonton, Alberta, Bomcas serves a wide range of clients across Canada. With a focus on personal and corporate taxes, along with comprehensive services in bookkeeping, payroll, and other accounting needs, they position themselves as a vital resource for addressing intricate tax matters. As an Edmonton late and back tax accountant, Bomcas Edmonton offers invaluable assistance in managing dealings with the Canada Revenue Agency, ensuring tax compliance, and strategizing tax planning to mitigate future risks. This article will explore the importance of professional guidance in navigating late tax filings, back taxes owed, and the array of tax services Bomcas Edmonton provides. From tax return preparation to resolving CRA audits and negotiating payment plans, their expertise spans across essential areas critical for personal and business financial health. Understanding Late and Back Taxes Navigating the complexities of late and back taxes can be overwhelming, but understanding the specifics can significantly ease the process. Bomcas Edmonton, as a dedicated provider of late and back tax preparation services, assists clients in managing unpaid taxes, late filed returns, and resolving issues with the Canada Revenue Agency (CRA). Penalties and Interest for Late Filing Late filing of tax returns triggers penalties and interest charges, which are calculated meticulously by the CRA. The initial late-filing penalty is 5% of the balance owing for 2023, with an additional 1% for each full month the tax return is overdue, up to a maximum of 12 months. If there has been a previous penalty for late filing in 2020, 2021, or 2022, and a formal demand for a return was made, the penalty increases to 10% of the balance owing, plus an additional 2% for each full month, up to 20 months. Interest Charges and Rates The CRA applies a prescribed interest rate of nine percent per annum, compounded daily, on underpaid taxes. This interest starts accruing from May 1 of the following year on any unpaid amount owing for the previous year. For those who are unable to meet their tax obligations on time, the CRA offers a taxpayer relief provision where penalties and interest may be waived or cancelled under certain conditions like financial hardship or extraordinary circumstances. Importance of Timely Filing It is crucial for businesses and individuals to ensure that their tax returns are filed on time to avoid these penalties and interest charges. Even if all necessary paperwork has been provided to accountants before the deadline, it is advisable to follow up and confirm that filings are completed before the due date. The deadline for filing 2023 taxes in Canada is April 30, 2024, and any taxes owed must be paid by this date to prevent further penalties and interest from accruing starting May 1, 2024. CRA's Measures on Instalments and GST/HST The CRA also charges instalment interest if your instalment payments are late or less than the required amount, with specific due dates throughout the year. Additionally, for those who collect GST/HST, late filing can result in a calculated penalty using the formula A + (B x C), where A is 1% of the amount owed, B is 25% of A, and C is the number of months the return is late. Understanding these aspects of late and back taxes, and ensuring compliance with CRA regulations, is essential. Bomcas Edmonton provides expert guidance and services in these areas, helping clients manage their tax affairs efficiently and effectively. Services Offered by Bomcas Edmonton Bomcas Edmonton, a premier Edmonton late and back tax accountant, extends a comprehensive suite of services tailored to meet the diverse needs of individuals and businesses across various sectors. Their offerings are meticulously designed to encompass every aspect of tax and accounting needs, ensuring compliance, efficiency, and optimized financial performance. Professional Tax and Accounting Services Individual and Corporate Tax Services: Bomcas Edmonton specializes in both personal and corporate tax preparation, ensuring accurate and timely filing to avoid penalties and maximize returns. This includes handling complex tax situations like late and back taxes with a focus on compliance and strategic tax planning. Bookkeeping and Financial Reporting: Essential to any business, their bookkeeping services provide accurate financial insights, allowing businesses to make informed decisions. This includes everything from daily transactions to preparing end-year financial statements. Payroll Services: They manage payroll processing, ensuring accurate and timely employee payments and compliance with all relevant tax laws and regulations. This service extends to both domestic and cross-border payroll solutions. Specialized Accounting Solutions Real Estate and Construction Accounting: With a deep understanding of the unique challenges in these sectors, Bomcas offers tailored accounting solutions that cover everything from project costing to GST compliance. Agriculture and Farming Accounting: Specialized services for farming and fishing enterprises ensure that all aspects of income, expenses, and investments are correctly accounted for, optimizing tax benefits and financial outcomes. Technology and Startups: For emerging sectors like technology and startups, Bomcas provides innovative accounting solutions and financial advice to support growth and scalability. Advanced Technology and Client-Centric Services Cloud Accounting Services: Utilizing the latest in cloud technology, Bomcas offers modern, secure, and efficient accounting solutions that allow businesses to access their financial data anytime, anywhere. Customized Client Services: Understanding that each client has unique needs, Bomcas provides customized services designed to meet specific financial goals and challenges. This includes everything from detailed financial analyses to strategic business planning. Comprehensive Advisory and Compliance Services CRA Audit and Compliance: Bomcas stands by its clients during CRA audits, providing robust support and ensuring that all dealings with tax authorities are smooth and compliant. International and Cross-Border Tax Services: For businesses and individuals with international dealings, Bomcas offers expert advice and compliance services, ensuring adherence to complex tax regulations across jurisdictions. Bomcas Edmonton's commitment to providing high-quality, comprehensive accounting and tax services makes them a trusted partner for anyone facing financial and tax-related challenges. Their expertise not only covers a wide range of industries but also includes specialized services that cater to the unique needs of diverse clientele, from local businesses to multinational corporations. Why Choose Bomcas for Your Tax Needs Choosing Bomcas Edmonton as your late and back tax accountant ensures you benefit from a team with unparalleled expertise and a client-centric approach. Here are compelling reasons to consider Bomcas for your tax and accounting needs: Experienced and Expert Team Bomcas Edmonton is staffed by a cadre of seasoned professionals, each bringing a wealth of experience in tax and accounting disciplines. This team includes qualified accountants, bookkeepers, and tax specialists who are not only adept at navigating complex tax issues but are also skilled in handling CRA audits. Their deep knowledge ensures that all clients, whether individuals or businesses, receive expert guidance tailored to their specific situations. Comprehensive and Transparent Services Clients choosing Bomcas Edmonton enjoy the benefits of comprehensive tax and accounting services. From individual tax filings to corporate financial management, Bomcas offers a full spectrum of services without hidden costs. Their approach is transparent, ensuring clients are well-informed and comfortable with every step of the tax handling process. Proactive Tax Saving Strategies One of the standout features of Bomcas Edmonton is their proactive approach to tax planning. The firm offers free consultations during which they provide tailored advice on tax saving strategies. This proactive guidance is designed to help clients maximize their savings and manage their financial resources more effectively. High Client Satisfaction and Reliability The professionalism, efficiency, and customer service of Bomcas Edmonton are consistently highlighted in client testimonials. These testimonials underscore the firm's reputation as a top-rated accounting firm in Edmonton, known for its reliability and high standards of service. Clients appreciate the firm's dedication to resolving their tax issues promptly and efficiently. Support for a Diverse Clientele Bomcas Edmonton has a proven track record of supporting a wide range of industries including technology ventures, construction, real estate, agriculture, and small businesses. This experience across various sectors allows them to provide specialized services that cater to the unique needs of their diverse clientele. Local Expertise and Global Compliance As a trusted and reliable accounting firm based in Sherwood Park and Edmonton, Bomcas combines local market expertise with compliance to global tax regulations. This dual focus ensures that clients who have both local and international tax obligations receive expert guidance that adheres to the highest standards of tax compliance. Choosing Bomcas Edmonton means partnering with a firm that not only understands the intricacies of Canadian and international tax law but also values the financial well-being of its clients. Their dedicated team, comprehensive services, and client-first approach make them an ideal choice for anyone seeking expert assistance with late and back taxes, ensuring peace of mind and financial security. How Bomcas Edmonton Handles Your Late Taxes Bomcas Edmonton, recognized as a proficient Edmonton late and back tax accountant, employs a strategic approach to managing late tax issues, ensuring that clients avoid unnecessary penalties and legal repercussions. Their expertise is particularly evident in how they utilize the Voluntary Disclosure Program (VDP) to protect clients' interests. Voluntary Disclosure Program Assistance Initial Consultation and Assessment: Bomcas Edmonton begins by offering a thorough consultation to understand the specific tax situation of each client. This step is crucial for determining eligibility for the VDP. Preparing and Filing Returns: They assist clients in preparing and filing accurate tax returns in accordance with the VDP, ensuring that all necessary disclosures are complete and compliant with Canada Revenue Agency (CRA) standards. Negotiation and Liaison with CRA: As part of the VDP process, Bomcas Edmonton acts as an intermediary between the client and the CRA, handling communications and negotiations to secure the best possible outcome. Optimization of Tax Positions Strategic Tax Planning: They provide tailored advice on tax strategies and best practices, aiming to optimize clients’ tax positions. This includes ensuring that clients take advantage of all applicable deductions and credits to minimize their tax liabilities. Regular Updates and Adjustments: Bomcas Edmonton maintains ongoing communication with clients to update tax strategies as laws and financial situations change, ensuring continuous alignment with best practices. By integrating these services, Bomcas Edmonton not only helps clients resolve their late tax filings but also enhances their overall financial health through strategic tax planning and compliance. This proactive approach positions Bomcas as a leader among Edmonton tax accountants, dedicated to delivering exceptional value and peace of mind to its clients. Expertise in Various Tax Services Bomcas Edmonton, renowned for its proficiency as an Edmonton late and back tax accountant, offers a vast array of specialized tax services catering to diverse sectors. This section delves into the comprehensive expertise that Bomcas Edmonton provides, ensuring that every client, regardless of their industry, receives tailored and effective tax solutions. Corporate Tax Filing and Personal Tax Preparation Bomcas Edmonton excels in both corporate and personal tax services, ensuring meticulous preparation and filing to meet compliance standards and optimize financial outcomes. Their services include handling complex scenarios such as late tax returns and providing strategic financial and estate planning to safeguard and enhance their client's financial legacy. Specialized Industry Expertise Bomcas Edmonton's tax services extend across various industries, each with unique challenges and requirements: Technology and Startups: Focused support for innovative and fast-growing sectors, including blockchain and cryptocurrency, ensuring these businesses meet the specific financial regulations and tax obligations that come with new technologies. Real Estate and Construction: From project costing to GST compliance, their expertise supports the fluctuating dynamics and substantial financial stakes involved in real estate and construction industries. Oil & Gas and Mining & Exploration: Navigating the complex tax implications and large-scale operations of these industries, Bomcas provides robust tax strategies and compliance support. Agriculture and Life Sciences: Tailored tax services that address the specific needs of the agriculture sector and life sciences, ensuring all aspects of income, expenses, and investments are accurately reported and optimized for tax purposes. Comprehensive Service Offerings Bomcas Edmonton is not only limited to tax filing and preparation; they offer a full spectrum of accounting services that support the overall financial health of their clients: Bookkeeping and Financial Reporting: Critical services that provide businesses with accurate financial insights and support informed decision-making. Estate Tax Accounting and Voluntary Disclosure: Assisting clients in managing their estate planning and voluntarily disclosing any unreported income to avoid penalties. Corporate Restructuring and Reorganization: Providing strategic planning for businesses undergoing changes to optimize operational efficiency and tax obligations. Client-Centric Custom Solutions Understanding that each client has unique needs, Bomcas Edmonton offers customized services designed to tackle specific financial and tax challenges. This includes but is not limited to: Non-Resident Real Estate and International Tax Services: Specialized services for non-residents and international clients to ensure compliance with Canadian tax laws. Sector-Specific Services: Tailored solutions for sectors like craft breweries, childcare facilities, and entertainment services, recognizing the unique challenges and opportunities in these fields. By integrating a wide range of specialized services and industry expertise, Bomcas Edmonton stands out as a leading provider of tax and accounting services. Their commitment to providing tailored and comprehensive solutions ensures that every client, from small businesses to large corporations, receives the highest standard of service and expert guidance in managing their tax affairs. Overcoming CRA Audits and Objections When faced with CRA audits and objections, understanding the formal processes set forth by the Canada Revenue Agency (CRA) is crucial for both individuals and corporations. This knowledge not only aids in navigating these challenges effectively but also in ensuring compliance and safeguarding against potential financial penalties. Formal Dispute Process The CRA provides a structured approach for disputing income tax assessments or determinations. Initially, taxpayers are encouraged to directly communicate with the CRA office responsible for the assessment. This step often resolves disputes without the need for formal proceedings. Steps to Filing an Objection Initial Communication: Engage with the CRA to discuss any discrepancies or concerns before moving forward with a formal objection. Filing the Objection: If issues are not resolved, filing an objection is the next step. This must be done within 90 days from the date the Notice of Assessment was sent. Documentation: The objection should include comprehensive details such as the taxpayer's full name, address, telephone number, tax year in question, social insurance number or business number, and a detailed explanation of the objection with supporting documents. Acknowledgment by CRA: Upon filing, the CRA provides a case number and sends an acknowledgment letter. This number should be referenced in all future correspondence. Handling Objections and Assessments The CRA reviews each objection impartially. An appeals officer may contact the taxpayer or their authorized representative to discuss the matter further. After review, the CRA will either vacate, confirm, or reassess the tax based on the findings. Advanced Dispute Resolutions If the taxpayer disagrees with the CRA’s decision, they have the option to appeal to the Tax Court of Canada. Further appeals can be made to the Federal Court of Appeal and potentially to the Supreme Court of Canada, depending on the case's nature and significance. Special Considerations for Businesses Businesses, especially those dealing with GST/HST under the Excise Tax Act, face specific challenges. They must provide detailed information when objecting to assessments related to input tax credits or other complex issues. Failure to provide necessary details can result in the objection being deemed invalid. Seeking Extensions Taxpayers who miss the 90-day deadline for filing an objection can apply for an extension. This application must include the intended Notice of Objection and be sent to the Chief of Appeals at a Tax Services Office or Tax Centre. Navigating CRA audits and objections requires a thorough understanding of the processes and timely action. Taxpayers, particularly those with complex cases, benefit from professional guidance to manage these situations effectively. Bomcas Edmonton, with its expertise as an Edmonton late and back tax accountant, provides the necessary support and strategic advice to handle such challenges, ensuring compliance and minimizing financial disruptions. Payment Plans and Negotiations Navigating financial difficulties often requires strategic planning, especially when dealing with tax liabilities. Bomcas Edmonton, as a leading Edmonton late and back tax accountant, provides expert guidance in setting up manageable payment plans with the Canada Revenue Agency (CRA). This section outlines the processes and considerations for taxpayers who need to arrange payment plans or negotiate terms with the CRA. Setting Up a Payment Plan with the CRA Pre-Authorized Debit (PAD) Agreement: Taxpayers can set up a PAD agreement through their online CRA account, allowing them to schedule a series of payments over time. This method begins with the withdrawal of the first scheduled payment from the taxpayer's account. Contact a Collections Officer: If you have been contacted by a collections officer, it is crucial to respond promptly by calling the number provided to discuss your payment options. Use of the Payment Arrangement Calculator: The CRA offers a Payment Arrangement Calculator online, which helps taxpayers estimate the amount and duration of payments needed to settle their tax debt. Key Considerations for Payment Arrangements Income and Expense Worksheet: Before setting up a payment plan, taxpayers should calculate their monthly income and expenses using the CRA's provided worksheet. This helps determine the feasible amount for monthly payments. Changes to Payment Arrangements: If circumstances change and you are unable to meet the agreed payment terms, it is important to contact the CRA immediately to discuss adjustments. Ongoing Compliance: Even with an active payment arrangement, it is essential to continue filing all tax returns on time and stay current with new tax obligations. Negotiating with the CRA Documentation Requirements: When negotiating payment terms, the CRA may require detailed information about your financial situation, including proof of income, expenses, assets, and liabilities. Taxpayer Relief Requests: In certain situations, taxpayers may request relief from penalties and interest charges, which can reduce the overall amount owed. Partial Payments: Making partial payments can be a strategy to reduce the accumulation of interest on outstanding tax balances. Bomcas Edmonton assists clients through these processes, ensuring that each step is handled with professional care and in compliance with CRA regulations. Their expertise in tax planning and negotiations helps clients manage their financial obligations effectively, avoiding further complications and ensuring peace of mind. Client Success Stories Bomcas Edmonton, renowned as a proficient Edmonton late and back tax accountant, has consistently demonstrated its ability to elevate both business and personal finances through its expert services. The firm's success is reflected in the positive outcomes experienced by its clients across various industries, which serve as a testament to its effectiveness and client-centric approach. Highlighted Success Stories Technology Startup Turnaround: A local tech startup struggled with managing their financials and faced significant tax penalties due to late filings. After engaging Bomcas Edmonton, the company not only rectified their past tax issues but also implemented a robust tax planning strategy that significantly reduced their future tax liabilities and supported their growth trajectory. Real Estate Group Compliance Overhaul: A prominent real estate group in Edmonton faced challenges with GST compliance and payroll taxes. Bomcas Edmonton stepped in to overhaul their accounting systems, ensuring full compliance with CRA regulations and securing substantial tax savings through meticulous planning and restructured accounting practices. Agricultural Business Recovery: An agricultural firm was on the brink of financial distress due to unfiled back taxes and mismanaged financial records. With Bomcas Edmonton’s intervention, the business not only resolved its back taxes through the Voluntary Disclosure Program but also received guidance on optimizing tax benefits related to farming, which helped stabilize and eventually expand their operations. Client Ratings and Feedback Bomcas Canada's commitment to excellence is further underscored by its impressive social rating of 4.8 out of 5 based on 18 reviews. This rating reflects the high level of satisfaction among clients, who frequently commend the firm for its responsiveness, expertise, and ability to deliver tailored tax solutions that address complex challenges. These success stories and client ratings highlight Bomcas Edmonton's role as a pivotal partner for businesses and individuals seeking specialized tax services. The firm’s ability to navigate complex tax landscapes and deliver customized solutions ensures that each client achieves optimal financial health and compliance. Conclusion Throughout the exploration of tax complexities and solutions, it's clear that the expertise of BOMCAS Edmonton late and back tax accountant plays an integral role in navigating the intricacies of filings, audits, and negotiations with the Canada Revenue Agency. Their wide array of services and specialized industry knowledge underscores the importance of professional guidance in achieving compliance, optimizing financial health, and securing peace of mind for both businesses and individuals alike. Their dedication to providing tailored, comprehensive solutions highlights the significant value they bring to their diverse range of clients. For those grappling with late or back taxes, or seeking strategic financial advice, the expertise of BOMCAS Edmonton stands as a beacon of support. If you're navigating the complexities of tax planning, audits, or compliance, enlisting their professional services can ease the burden and guide towards a more secure financial future. Whether you're a startup, a multinational corporation, or an individual, allow BOMCAS Edmonton to simplify your tax-related challenges and propel you towards achieving your financial goals. FAQs What are my legal options if my accountant fails to file my taxes in Canada? If your accountant has not filed your business' tax returns, you may have the right to seek compensation for any financial losses incurred due to their negligence. You can potentially sue your accountant for malpractice to recover these losses. Can accountants be held responsible for errors on tax returns in Canada? Yes, accountants can be held accountable for mistakes made on your tax returns. If such errors result in interest and penalties, your tax preparer may be required to cover these costs and provide advice on how to address the situation with the Canada Revenue Agency (CRA). However, they are unlikely to pay for any additional taxes that you owe. What should I do if I discover an error on my tax return in Canada? If you find an error on your tax return, the CRA has a service called ReFILE that allows individuals to electronically amend previously filed taxes and correct the mistake. How can I correct a tax return if my accountant made an error in Canada? If you notice a mistake on your tax return made by your accountant, you can request a change from the CRA after receiving your notice of assessment. To make this change online, log into My Account on the CRA website, select "Change my return," and submit your request.

Edmonton Late and Back Tax Accountant: Your Solution for Tax Troubles

May 9, 2024Posted inTax
As an Edmonton late and back tax accountant, Bomcas Edmonton offers invaluable assistance in managing dealings with the Canada Revenue Agency, ensuring tax compliance, and strategizing tax planning to mitigate future risks. This article will explore the importance of professional guidance in navigating late tax filings, back taxes owed, and the array of tax services Bomcas Edmonton provides. From tax return preparation to resolving CRA audits and negotiating payment plans, their expertise spans across essential areas critical for personal and business financial health.