Do you look forward to, or hide from TAX TIME?

by Brian McIlmoyle on April 8, 2014

At this time of year the mind turns to taxes,  Most years you get a nice stretch of spring weather to shake off the winter doldrums and get ready to face tax time. This year Tax Time is looming and spring is late.

Dealing with taxes is something that we all have to do. Alooniess with many things preparation and planning is the key. Ideally taxes should be something that you think about regularly, not just as the end of April approaches.

If you are earning a wage and having your taxes taken at source, tax time is pretty much a breeze. You can use many of the software packages available to prepare and file your own taxes.  Even a pencil and a calculator would suffice. Of course there are many tax preparation services out there that can prepare your taxes for a fee. Most use the same software that you can buy yourself.

If you are self employed Tax Time can be a little more daunting, but it does not have to be. Again, preparation and planning is the key.  Tackle the problem piece by piece. Job one is compiling your records, sorting them into months and then summarizing each month by income and expenses.  Then total the months to an annual summary. Going forward you can do this as the months go by. Create an envelope or file for each month and put all your records, receipts and invoices in the envelope for each month. Come Tax time all of the hard work is already done. No one likes sorting though a shoebox of jumbled records. If you use an accountant to prepare your taxes. The better the records you give them the better ( and least expensive ) their job can be. Paying someone $150 a hour to sort your receipts for you  is a big waste of money.

Filing on time is critical regardless if your owe taxes or have a refund coming. If you owe, late filing penalties will add to the amount.  If you are entitled to a refund, you want your money as soon as possible so you can put it to work for you right away.

If you have been avoiding filing, it;s probably because you can’t deal with the outcome. You owe taxes or are going to and you know you can’t pay. Not filing is not a viable solution. It’s not illegal to owe taxes, it is illegal to not file.

Get you taxes filed, crystallize the tax problem so that you can start to develop solutions. Income Tax arrears can be dealt with by filing a proposal or by Bankruptcy. There are solutions. A licensed Trustee can help to clarify your options.

If you have tax problems. Call us today at 905 848 3649, we can help and consultations are free.

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