There are thousands and thousands of Canadians who are behind filing their income tax returns. Once income tax returns filings fall behind, a number of challenges will surface.

1. The Canada Revenue Agency will consider that you are a tax evader which is a criminal offence.

2. You are at risk of being notionally assessed and the Canada Revenue Agency filing tax returns on your behalf, not based on your actual income and not considering your expenses.

3. You will face significant interest and penalties if the Canada Revenue Agency is aware that you have failed to file your income tax returns and has requested that you file them.

4. The Canada Revenue Agency will demand that you pay your income tax debt in full and you could face aggressive enforcement and collection action by the Canada Revenue Agency.

Most income tax accountants can prepare a tax return but many do not have practices that focus on helping Canadians resolve serious tax problems that can accompany filing late income tax returns. Once the late income tax returns are filed and a tax debt is assessed, you are essentially on your own and if you can't pay, many accountants will direct you to a trustee in bankruptcy to deal with your tax debt. This is not because they don't want to help. It is often because they don't have the resources or infrastructure to support a taxpayer that has a serious income tax problem.

This is the reason that organizations like the Tax Resolution Centre of Canada exists. Once your tax returns fall into arrears, there are many strategies that can be applied to help you not only become tax compliant but also that can help you mitigate what outcomes can come with and follow the filing of late income tax returns - many of these options don't involve bankruptcy.

First we must explore why you have fallen behind filing your income tax returns. If there is evidence that supports significant financial hardship, a medical problem (this includes mental health) or a disaster (fire, flood etc…) you may qualify for relief of interest and penalties.

Has the CRA asked you to file your income tax returns? If you have not received a letter or phone call from the CRA requesting that you file your past due income tax returns, you may be able to make an application for tax amnesty under the Voluntary Disclosure Program. If it is accepted by the Canada Revenue Agency, you could avoid interest and penalties altogether.

Can you afford to repay your tax debt on a monthly basis? When you try to negotiate with the Canada Revenue Agency directly, they will demand full financial disclosure and demand to be paid in full. There are circumstances under which they will accept a monthly repayment plan but it must be structured and negotiated in a way that you remain protected.

Do not try to negotiate with the CRA on your own or have someone negotiate with the CRA (even your accountant) who does not have significant experience working with the CRA, especially where an individual is going to owe a sum of money that they will not be able to pay in full. You will walk right into a deadly trap. CRA agents are very skilled at extracting the information that they will need to come after you to collect their money. This could include making a verbal monthly payment plan with you to gain information about where you bank for example and then reneging on the arrangement resulting in freezing your bank account. We see this often.

The best thing that you can do if you are in this situation is retain an organization that only helps individuals and businesses that have tax problems. This will ensure that you get the best representation.