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Topic: Income tax advice
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J Z

8/10/2016 8:48:02 PM
Member since:
Sep 2008
Total posts:119
Income tax advice

My uncle has been quite sick for the last few years. Finally he's getting better. He hasn't filed for Income tax for the last 3 tax years. He tells me, " He hasn't paid income tax for years, so his only focus was on getting better, and being around family. Luckily he has kept almost everything for receipts, T-4's and t-5's etc. He however is missing a T-4 from 2 years ago. The company he worked for, has since went out of business.  
 
So the big question is how would he go about getting a copy of a T-4? Just get a hold of Revenue Canada?  
 
I'm wondering once he does have that, would it be better for him to go see an accounting place, or an income tax specialist ( like Liberty/H &R)? I'd like to help get this done for him, before he has another surgery in the Fall. Thanks everyone for the valuable input.

Tagged as: income tax
 
 
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summergal

8/10/2016 8:58:58 PM
Member since:
May 2009
Total posts:1480
....

I would stay away from h&r, I found that unless you have the right person that anything a little more complicated than regular taxes they might not know what to do. We used an accountant for he first time this year and will continue to do so....she was cheaper than h&r also.

~BooBoo~

8/10/2016 9:03:05 PM
Member since:
Jun 2011
Total posts:639
.....

An long as his old employer properly submitted the t4 or t5 to the CRA it should easily be accessible. I would recommend him going and talking to a CPA/CGA. They could get him to sign an authorization form giving them permission to deal with the CRA on his behalf and access all his information online right down to the last tax year he filed. They can then compare what happened in the last tax year filed to current years about to be filed. They also know the order to file tax returns in so it would better benefit your Uncle. Certain things can only go back as far as 3 years anyways so he could still be in that magic window.  
 
There could be provincial credits you may not be aware of that may or may not be able to be claimed that could easily be missed by someone at a place like H&R.  
 
That's just my opinion.

batoochie

8/10/2016 9:22:12 PM
Member since:
Jul 2015
Total posts:48
This

I would suggest someone who has been been properly educated and h&r is very hit and miss. You can search out a private company that does it.

UpHere49

8/10/2016 9:40:43 PM
Member since:
Mar 2008
Total posts:128
A tax accountant

I would use the services of a tax accountant, one who fully understands tax law.  
 
Even though your uncle hasn't filed income tax for the past three years it's vital you DO back file for those years as I'm sure he is missing out on a number of programs that could actually give him money - as long as he has filed his taxes.  
 
If he's been very sick for three years (and hasn't been able to work consistently), get his doctor to submit a claim for the Disability Tax Credit - it could be worth thousands to him and can be back dated to the start date of his disability 2015's amount was $7250.00)  
 
Also, he could be entitled to the quarterly GST. And, if he's 65 or older with a lower income he'd qualify for the GIS (guaranteed income supplement which is added to his Old Age Pension).  
 
All of these tax benefits are only avialble if your income tax filings are up to date. If he doesn't owe anything there is no penalty for not filing. But you can only claim these government benefits if you DO file.  
 
Finally, the CRA already has a copy of any generated T slip your uncle received. They can certainly help with any tax info you require.

AndreaD.

8/10/2016 10:23:30 PM
Member since:
Dec 2011
Total posts:698
CRA

I had lived out of country for several years. When I came back and needed to fill out income tax for the years I was out of country, I called the CRA and they sent me all my T-4, and the tax forms & guides for each year I had been out of country.  
So for your uncle, they would send the 2013, 2014 & 2015 tax packages as well as any T-4s registered to his social insurance number for those years.  
I don't know the number off my head. But the government general inquires nuber is 1-800-OCANADA. The are very good about getting you the phone numbers you need with no hassle.

xanthe100

8/11/2016 12:08:08 AM
Member since:
Nov 2009
Total posts:705
Interest and penalties

You will be shocked to see the amount of interest and penalties tacked onto each tax return. He can apply for some relief from interest and penalties. Cra has a form that can be printed and get the doctor to fill it out. It may take up to three months but it may be worth it.

CaptainK

8/11/2016 12:39:35 AM
Member since:
Nov 2009
Total posts:99
Accountant

Definitely go to a proper accountant, not a place like h&r. H&R often just has someone who knows nothing more than how to fill in the boxes on a standard online tax form submission like you could do yourself at home.  
 
My husband skipped a few years taxes and the accountant found all the old t4s for him.  
 
I don't think he had bad penalties, but he also didn't owe anything.

Son-Rea

8/11/2016 7:47:44 AM
Member since:
May 2009
Total posts:416
Liberty Tax

I know someone who used them when they hadn't paid (didn't owe) for a few years either...we use them now as well & am happy with their service.

saltnpepper

8/11/2016 8:09:58 AM
Member since:
Jul 2012
Total posts:406
Liberty Tax

I second Liberty Tax. They are very good.

DianneLepage

8/11/2016 8:41:26 AM
Member since:
May 2014
Total posts:16
PM

I sent you a message.

Classified

8/11/2016 8:42:09 AM
Member since:
Sep 2009
Total posts:452
Call CRA...

If you call CRA at 800-959-8281 and request all information slips they have on file, they will send them to you. I've helped several people complete returns from previous years and usually get the slips within a week or so.

Just an opinion

8/11/2016 2:09:35 PM
Member since:
Sep 2008
Total posts:1881
Depends

  
xanthe100 said "You will be shocked to see the amount of interest and penalties tacked onto each tax return. He can apply for some relief from interest and penalties. Cra has a form that can be printed and get the doctor to fill it out. It may take up to three months but it may be worth it. "

If your uncle is getting money back there will be no penalties just interest he wil need to claim as income next tax season  
If however he owes that''''''''s a different story but do go to a tax place like Liberty or Westman Tax  
Is he a senior there is a free tax service available to do his returns  
 
Also you can go online and open an account for your uncle at services Canada and get access to all t slips etc might be easier for you  
 
http://www.esdc.gc.ca/en/msca/index.page  
 
Another is the CRA site personal account  
http://www.cra-arc.gc.ca/esrvc-srvce/tx/psssrvcs/menu-eng.html  
This one might work better in your case  
 
Edited by perhaps, 2016-08-11 14:25:52

xanthe100

8/11/2016 2:31:44 PM
Member since:
Nov 2009
Total posts:705
Would it not be

  
perhaps said "
  
xanthe100 said "You will be shocked to see the amount of interest and penalties tacked onto each tax return. He can apply for some relief from interest and penalties. Cra has a form that can be printed and get the doctor to fill it out. It may take up to three months but it may be worth it. "

If your uncle is getting money back there will be no penalties just interest he wil need to claim as income next tax season  
If however he owes that''''''''s a different story but do go to a tax place like Liberty or Westman Tax  
Is he a senior there is a free tax service available to do his returns  
 
Also you can go online and open an account for your uncle at services Canada and get access to all t slips etc might be easier for you  
 
http://www.esdc.gc.ca/en/msca/index.page  
 
Another is the CRA site personal account  
http://www.cra-arc.gc.ca/esrvc-srvce/tx/psssrvcs/menu-eng.html  
This one might work better in your case  
 
Edited by perhaps, 2016-08-11 14:25:52"

The other way around? I'm pretty sure there's a penalty for filing late. Otherwise what's the point of a filing deadline? I thought there was a 10% penalty right off the bat for filing late. I could be wrong I guess. I haven't confirmed that info with cra.

Just an opinion

8/11/2016 2:48:50 PM
Member since:
Sep 2008
Total posts:1881
Try this program for uncle

There is a program that you can contact through CRA called Voluntary Disclosures Program  
http://www.cra-arc.gc.ca/gncy/nvstgtns/vdp-eng.html

Just an opinion

8/11/2016 2:58:19 PM
Member since:
Sep 2008
Total posts:1881
Xanthe100

There was a proposal put forward in regards to penalties for non filing but usually you are only penalized if you owe the government as far as I am aware the proposal is still just a proposal  
Under proposed changes, if you did not report an amount of income of $500 or more for a tax year, it will be considered a failure to report  
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/ntrst/menu-eng.html

UpHere49

8/11/2016 3:52:24 PM
Member since:
Mar 2008
Total posts:128
No penalty

If you do not owe money in any given year. there is NO penalty for not filing. In fact, you really don't have to file. If you do owe money there is a penalty for late filing PLUS interest on the owed balance.  
 
Even if you had no taxble income in a year it is still important to file a return as that allows you to take advantage of the available federal and provincial programs as they are based on your last filed income tax.

UpHere49

8/11/2016 3:57:25 PM
Member since:
Mar 2008
Total posts:128
Also

There will be no tax payable on any refund you get through an income tax return as it is viewed as "returned money" - you overpaid for that year and the government is "returning" it yo you.

wonderment

8/11/2016 4:07:29 PM
Member since:
Aug 2014
Total posts:392
:)

No fees for filing late unless you owe is correct. Definitely go onto the cra website and you can print off the missing paperwork there. Anything submitted to the govt will be there .. and I would suggest going to Knight tax services they've been in business a long time and are reputable. H&R has a couple really good preparers working in the mall now. I'd suggest any of the three if choosing a tax prep place. They've all been in the industry for at least three yrs and do a great job.


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