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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4064
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
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What is the process that a Canada Revenue Tax Collection agent

Resolved Question:

What is the process that a Canada Revenue Tax Collection agent uses to collect on taxes owing?
How long can I delay a collection agent to get to making a payment plan that I can live with?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

From http://www.cra-arc.gc.ca/E/pub/tg/t4060/t4060-12e.pdf

"In most cases, if balances are not paid within 30 days of the date a notice of assessment or reassessment is issued, a second request for the balance owing will be made either by mail or by telephone.
If your balance remains outstanding and you have not been in contact with us to discuss payment of your debt, we may send you a final letter. The letter will notify you that if you do not make full
payment or other satisfactory arrangements within 90 days after the notice of assessment or reassessment, we may take legal action such as
garnishing your income (that is: we may intercept funds payable to you) or initiate other legal action (that is: directing the sheriff to seize and sell your assets). Interest charges will continue to
accumulate on any unpaid balances.

Arrangements to pay:

If you cannot pay the full amount of taxes you owe, you may be able to make a payment arrangement. We will accept payment arrangements when you have exhausted all Our collection procedures,reasonable possibilities of obtaining the necessary funds by borrowing or re-arranging your financial affairs.

If the CRA determines that you are unable to make a full payment, an agent can work with you to develop a plan to help you pay your taxes.

Call us at 1-888-863-8657 to discuss a payment arrangement. Our agents are available Monday to Friday (except holidays) from 7 a.m. to 11 p.m.,Eastern standard time."



Sorry for just cutting and pasting, but this one just is what it is ... and you are best served by seeing exactly what the CRA says.



You would be well served to read this entire pamphlet:

http://www.cra-arc.gc.ca/E/pub/tg/t4060/t4060-12e.pdf



Lane
Customer: replied 1 year ago.

Your answers are to the point and clear by using the cut and paste functions.


I need a little more clarity and have to add some details to this.....I went to Tax court to fight a 12,000.00 assessment and made a claim for tax payer relief.


(YEARS, 2005, 2006, 2007)


 


I have yet to hear in writing from Tax payer relief and a collection agent is calling.


One year's refund (2010)has reduced the amount to 9000.00 and the tax refund from 2011 will reduce the amount by about another 5500.00 leaving me with the tax refund the current year expected to be about the same and expected by March or april 2013.


 


I don't mind giving up my tax refunds to pay them but on their timeline for completing the tax returns. i have few options other than cash advances on plastic.


 


Is a payment plan worth starting or can I try to drag them out without them resorting to seizures...I am concerned about possible action on their part and not having time to react to avoid heavy handed action.....


 


With your answer I will supply excellent service as my comment and my thanks


 

Expert:  Lane replied 1 year ago.

I thin, mark, you are at the point where the agent has a good deal of discretion.

I am not trying to be evasive, but I think (at this point) this is art more than science.

If you start the payment plan you relieve some pressure but by starting the payment plan, they may be able to infer (and lock in)that you are admitting to the whole amount owed, without the refunds.

You may get the upper hand, if you will, by being proactive and calling 1-888-863-8657 and saying that you want to set up a payment plan, but would respectfully XXXXX XXXXX they document (give you something in writing) that this is being done with the expectation of pending relief (tax Court Case # XXXXX).

The more aggressive route would be to call and say that you have gone to tax court, do not believe that you owe then amount in question and ask where you should your letter disputing the validity of the debt.

Also, if you haven't spoken to the collector, I would also, with them, co-mingle these issues...i.e., how can I send you something when I expect relief from the tax court?

Again, you have a better feel for their demeanor/stance at this time, but I would certainly point out that amount they're trying to collect is in dispute.

Sorry, but again, you're far enough down the line here that it's hard to quantify, and they do not provide any published specificity regarding time lines for an action this far along.

Hope this might help you think it through...

Lane


Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4064
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 2 other Tax Specialists are ready to help you
Customer: replied 1 year ago.

many thanks

Expert:  Lane replied 1 year ago.

YW, and good luck.

As you get further into the process, let me know if I can help further.

Lane

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