As a taxpayer and Canadian citizen, you may sometimes go through tough financial times and be unable to pay taxes owed come tax season. CRA form RC376 is one document you may have to fill out to achieve this. The Canada Revenue Agency (CRA) allows individuals to cancel or waive interest or penalties based on an inability to pay or financial hardship. Form RC376 is a statement of income, expenses, assets, and liabilities that states your financial situation or provides a written statement. A taxpayer can ask for relief in the form of extending the filing-due date, waiving interest or penalties, or authorizing a reassessment, to name a few.
Financial hardship is the most obvious reason to file this form, but other life events may be considered by the CRA. They include, but are not limited to:
If a loved one dies, you or a loved one gets a serious disease such as cancer, or are involved in a vehicle accident, you may be unable to pay your taxes on time. This incurs fees and penalties. However, if you can demonstrate and prove that this event prevented you from paying on time, the CRA may waive the interest charges or penalty fees. You may need to provide documentation such as a:
Events such as floods, fires, earthquakes, and oil spills are just a few examples of events beyond your control. These events may disrupt your life, displace you from your home, and make it difficult if not impossible to file your taxes on time. You may need to provide documentation such as:
In the unlikely event the CRA makes a mistake with your filing, an undue delay in resolving an audit or objection occurs, or incorrect information is provided by the CRA, you may be eligible to get your interest and penalties waived. You will have to explain in writing the details and timelines of the delay or error caused by the CRA.
The deadline to file your taxes for the current year and pay taxes for the previous year is April 30th. If you or your spouse or common-law partner are self-employed the date to file is extended to June 15.
When you file your income report, you can apply for a CRA Taxpayer relief program.
As well as filling out form CR376, the CRA will ask you to provide documents to demonstrate your financial hardship. Documents to support your financial disclosure may include:
We have been advising businesses and individuals in the Toronto area since 1990. With years of experience behind us, we can advise you on the right course of action if you are late filing your taxes and think you may be eligible to use form RC376 to waive penalties or fees. Get in touch with us for a free consultation to find out more.
