Who this applies to
People who have missed one year or several. Employees, people who work for themselves, students, seniors and newcomers. It also applies to owners of a corporation that has not filed. The corporate steps are a little different. We cover them on our corporate tax page.
One thing most people do not realize
Filing and paying are two separate things. The late filing penalty only applies when there is tax owing. It stops growing the day the return is filed, even if nothing is paid that day. Filing first and arranging payment second is almost always cheaper than waiting until you can pay in full.
Why filing matters even if you cannot pay
The CRA has a program for unfiled returns. If it believes tax may be owing, it can send letters, call, and eventually take stronger action. Late filing penalties apply when tax is owing, and they get larger for a repeat late filing after a formal demand. Interest runs on both the tax and the penalties.
Filing and paying are separate. Filing the return stops the late filing penalty from growing. If you cannot pay what the assessment shows, the CRA will discuss a payment arrangement. Many people also find they are owed money for some of the missing years, or that filing unlocks benefits they were not receiving.
Step 1: work out which years are missing
Write down each tax year and whether you filed. If you are not sure, your CRA My Account shows which years have been assessed. If you cannot get into My Account, we can help you work it out from what you have.
Step 2: gather what you can find
You do not need a complete set to start. Useful things, in rough order of importance:
- Any tax slips you can find (T4, T4A, T5, T4E, T5007 and similar) for each missing year
- Letters from the CRA, opened or not
- Bank statements, if you worked for yourself or had cash income
- Receipts for things that may reduce tax: RRSP contributions, childcare, medical expenses, donations, tuition
- Rent or property tax paid, for BC credits
- Your last Notice of Assessment, if you have one
Missing slips are common and usually fixable. Employers and banks file copies with the CRA, and those copies can be retrieved for most years.
Step 3: the first appointment
What we ask for at the first meeting.
- The list of years from Step 1.
- Everything from Step 2, in any order. We sort it.
- Any CRA letters, especially anything with a deadline.
- A few minutes to talk through what changed year to year: jobs, moves, marriage, children, self-employment.
From that we tell you which years can be filed right away, which need slips retrieved first, and what the fee will be.
What to expect after filing
Each year is assessed separately and you get a Notice of Assessment for each. Refunds for some years may offset amounts owing for others. If there is a balance, the CRA’s page on payment arrangements explains the options, and we can explain what it means for you.
What this guide does not cover
We do not promise that penalties will be cancelled. The CRA has a Voluntary Disclosures Program and a taxpayer relief process. Whether you qualify depends on the facts, and the rules changed in October 2025. If either might apply to you, tell us. We will say whether it is worth trying, or whether you need a specialist.
Official sources
This guide is general information, not advice about your situation. It reflects the rules for the 2025 and 2026 tax years. It has not yet been reviewed by a practitioner. The information was checked against the official sources listed above on the date shown. Rules change. Check the official sources above or ask us. How we prepare these guides.