A Note About Meeting Time Availability

This update is being written on April 19, 2021.

This year we expect to prepare and file 1,500 personal tax returns. Managing the work flow in busy season has become more and more challenging as the business has grown. I now have three other staff members in the office to help manage the growth.

There are many different ways we work with clients, including over the telephone, by fax, email, regular email and Zoom calls. Due to COVID-19 we have suspended in-office appointments.

To ensure that all files get completed on a timely basis, I have to block off times in the calendar as we get closer to our deadlines.

The calendar is now closed for meeting requests until May but you can still send us your information.

Please see below for important information that I trust you will find useful when planning the timing of your tax return filing and about deadlines and exposure to interest and penalties.

Tax Deadline Information

The regular filing deadline is April 30th unless you are reporting self-employment income, which extends your filing deadline to June 15th.

Penalties and interest are levied only if you file late AND pay late. If you can't file on time, consider making an estimated payment to cover what you owe BEFORE the deadline and you won't be charged either penalties or interest.

Penalties for late filing are much more significant than interest charges.

For example, if you owe $5,000 and file one day late, you will be charged a 5% penalty, or $250. For every subsequent month (to a maximum of twelve months) that you don't file, the penalty is increased by 1%, or $50. The interest that gets added is currently at an annual rate of 5%, or $0.68/day in this example. So if you don't file and you don't pay for a year, the penalty would be 17% of $5,000, or $850 and the interest charge would be $250.

Again, penalties for late filing are much more significant than interest charges. If you can't pay on time, you should still file on time to avoid the penalty!

If you are in a refund position, then you effectively have no deadline as there will be no penalty or interest charged. That said, we get that you probably want your refund. As we approach the April 30th deadline, we trust that you understand that we have to prioritize those who are exposed to late charges so no one pays a penalty.

The upshot to all of this is that if you or your spouse/common-law partner are reporting self-employment income OR your expect to be in a refund position you do not have to file by April 30th.

See here for more information about interest and penalties for late filing and/or payment:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/interest-penalties.html