A cross border tax specialist can help you assess penalties on overdue tax returns in regard to cross-border tax laws. From a cross border tax specialist, Canadian residents who gain income from the United States can be informed of the rules for filing taxes and how to lessen their US withholding taxes. With the signing of the US-Canada Treaty, residents from US and Canada who work in the countries mentioned are exempted from double taxation.
The US-Canada Treaty is beneficial to Canadians with income earned in the United States because it prevents amounts from being withheld for taxes. They are asked to accomplished a form called, W-8BEN, wherein you promise to declare your US income on your Canadian tax return.
According to Canada Revenue Agency (CRA), on top of prescribed interest rates for balances owing, the CRA levies late filing fees against you. You can have your late filing fees waived, in some cases, but you have to make an application in writing by completing From RC4288 or Request for Taxpayer Relief.
You need to keep in mind, that there’s a distinct difference between paying your taxes late and filing your taxes late. You will be subject to interest if you file your taxes on time but don’t have the cash to pay the balance owing. However, you’ll automatically be subjected to a late filing penalty in addition to any interest on the tax balance owing, if you miss the filing deadline and file late. It is a real nightmare when you get a late filing penalty when you file your taxes late.
Cross border tax services can take a look on how you file common tax returns. If you know you’re going to be late on your tax return, make sure to get a professional advice from cross border tax services. It may be best to take a guess on how much you owe and how you pay your tax returns before the deadline. To avoid late filing penalty or paying interest, do not file late.
With assistance from a cross border tax specialist, you can be assured that your tax return is prepared accurately and professionally.