‍Ottawa CPA for Back Taxes – What to Do if You Haven’t Filed in Years

December 5, 2024

I see this question all the time on Reddit. It usually goes something like this:

“I haven’t filed taxes in 5 years. I’m panicking. What do I do?”

Or:

“CRA just sent me a letter saying I owe, but I haven’t even filed the return yet.”

Back taxes aren’t uncommon. I work with people across Ottawa who haven’t filed in 3, 5, even 10+ years. It happens. Life gets busy, things fall through the cracks. What matters now is how you clean it up.

Here’s what you need to know.

Step 1: Talk to someone. No obligations, confidential.

The longer you wait, the worse it gets. CRA charges interest and penalties from the day the return was due, not when they find you. That means waiting another year doesn’t make the problem go away.

If you’re self-employed or were getting paid in cash, it’s even more important to file. CRA might already have your info from T4A slips, bank account tracing, or previous employers. They’re not always right, but they will move ahead without you if needed.

Step 2: CRA’s Voluntary Disclosures Program (VDP)

If you’re coming forward before CRA contacts you, you might qualify for the Voluntary Disclosures Program (VDP). It gives you a shot at:

Avoiding penalties
Avoiding criminal prosecution (yes, that’s a thing for tax evasion)
Reducing interest

But it’s a one-shot deal. You can’t submit twice, and you need to come clean about all the years you missed.

More info:

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Step 3: Gather What You Can

I always tell my Ottawa clients, don’t panic if you don’t have every receipt or document. CRA already has most slips (T4, T5, etc.). We can pull your CRA My Account or representative access and reconstruct what’s missing.

Even if you had self-employment income or rental property, we can usually work backwards from your records, old bank statements, invoices, e-transfers, and estimate reasonably.

The key is reasonable effort. CRA isn’t looking for perfection, they’re looking for honesty.

Step 4: File Everything at Once

Once we build the returns, we send them all in together. Whether it’s 3 years or 13 years, I package it in a way CRA understands, with an explanation and context if needed.

If the VDP applies, we file the disclosure first, wait for approval, then file the returns under the approved protection.

Step 5: Deal With What You Owe

Some clients owe, some don’t. Many are actually owed refunds, especially if they had taxes withheld and just never filed to claim them.

If you owe, we talk about options:

CRA payment plans
Financial hardship requests
Applying for Taxpayer Relief to reduce interest or penalties

In worst-case scenarios, we might bring in a bankruptcy trustee, but that’s rare.

Real Talk – Don’t Let Fear Delay You

I’ve seen it all. Clients who didn’t file since the 90s, people who moved to Ottawa and thought they didn’t need to file Canadian returns anymore, self-employed artists, barbers, freelancers, cash workers, you name it.

What they all have in common?
They wish they’d started sooner. The paperwork doesn’t go away, and CRA doesn’t forget.

You don’t have to do it alone.

Why Work with a CPA for Back Taxes in Ottawa?

Ottawa is home to some of CRA’s most active compliance offices. I’ve dealt with the Sudbury Tax Centre, the NVRCC processing units, and the Taxpayer Relief Centre. I know how these files are reviewed, flagged, and escalated.

Working with a CPA:

Gets you organized
No oglibation, confidential
Helps you understand what CRA really wants
Increases your chance at penalty relief
Lowers your anxiety, because you’re not guessing anymore

Final Thoughts

If you live in Ottawa and haven’t filed in years, don’t wait for CRA to catch up. Reach out, ask your questions, and let’s put together a clean submission.

Even if you’re still not ready to file, I can give you a roadmap.

We’ve helped Ottawa clients wipe out $8,000+ in late-filing penalties, get back on CRA’s good side, and finally sleep at night knowing it’s behind them.