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TAX TIP The Canada Revenue Agency Has Options for You if You Owe Us Money or Have a Debt That We Collect for Another Government Department

Saturday, 20 April 2024 02:33.PM

Receiving a letter from the Canada Revenue Agency (CRA) telling you that you owe money can be stressful. Take time to read the letter fully to understand your payment options. We are here to help you understand how you can resolve your debt.

Here is what you need to know:

How to pay: People who receive a collection letter should follow the payment directions provided in the letter, or visit the CRA webpages for more options.

The CRA has a number of payment options for you to pay income tax, COVID-19 benefits or subsidies, or other CRA overpayments. Visit Make a payment and choose the payment option that works best for you.

The CRA collects Employment Insurance (EI), Canada Pension Plan (CPP), Old Age Security (OAS), overdue student loans, and other overpayments on behalf of Employment and Social Development Canada (ESDC), as well as amounts on behalf of Canada Border Services Agency (CBSA).

Click on the link to make your payment to:

• ESDC
• CBSA

What to do if you can't pay: We understand that everyone's personal situation is different and we will take that into consideration. Even if you can't afford to pay your debt in full when it's due, contact us to discuss your situation. We have payment options to give you more time and flexibility to repay your debt.

Schedule a series of payments: In some circumstances, you can authorize the CRA to withdraw a certain amount directly from your bank account, on dates of your choice, by scheduling a series of payments. To use this service, you will need to register for My Account.

Please note: it takes five business days when a pre-authorized debit is first set up, to when the funds will be processed. Also, the debit agreement cannot be cancelled less than five days before the payment is due.

What if you do nothing: Ignoring your debt does not make it go away. If you don't pay, the CRA can take steps to recover the amount you owe. For example, we can withhold your benefit and credit payments or tax refunds, and apply them to your outstanding debt. Acting quickly will help you avoid other financial or legal consequences.

When to contact the CRA: Contact us if you want to:

• Discuss your personal situation or set up a payment arrangement if you can't pay in full. A payment arrangement is an agreement to pay the balance you owe with regular scheduled payments over a period of time.
• Confirm where to send your payment if you're not sure.
• Confirm your payment is received if you made it and it's still not showing on your account.
• Confirm that the call or correspondence you've received is from the CRA.

Need More Information? Visit Debt collection at the CRA to learn more about the options available to help you pay your debt.

SOURCE: Canada Revenue Agency

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