The Voluntary Disclosure program is available to individuals who are behind filling their taxes, who filled their taxes, however a wrong amount was declared, usually a lesser amount and they failed to declare all their income. And for people who claim entitlements when they did not qualify. This program is proven to be very helpful to those who committed tax mistakes; Filers will have a chance to fix all the mistakes and clear pending cases against them. It is Very useful program, which would help many Americans and reduce the margin of underpayment to the federal government. In the past years, the Voluntary Disclosure in Canada has experienced many changes on its system. Most recent change was implemented and the disclosures were moved to regional centers and new screening processes were implemented. It was an improvement from the turnaround time for reviewing the packets were screeners were able to review the disclosure packets sooner and were comparing the packets to a checklist which enables time management, by both processing quicker and more efficient screening and a faster process returning incomplete items or wrong items back to the sender. When returning the packets back to sender an explanation letter is also included to make this process easier and more effective, because it identifies the mistake and send it to sender, stating what the mistake is and what to fix.
There are a vast number of improvements to the system by providing a more accurate review and acceptance of tax returns by individuals or business. The first it will not allow fillers to file if they do not have a social insurance number or a business number. The agency will received the application and process however it will be required that the filer would applies and acquire an identification code. The packet would be processed on a non-name basis due to this fact. Another Important factor would be that the system would match the amount declared or identified. It usually presents with some problems, because some amounts are under reported, omitted, and not correct and those disclosures when submitted before all the work needed was completed and filling with three months from the filling disclosure was an acceptable approach to the Canadian revenue agency. Lastly when the disclose packet is very large, sometimes due to the system approach, the packet would not be reviewed thoroughly and screeners usually were issuing the checklist letter before they would review the entire packet. It is desirable to provide a checklist with each packet and use a cover letter for each disclosure packet with guidance and identifying the compliance of each checklist and provide a very detailed explanation of the reason the item is not in compliance. It is needed to be a clear explanation to why the items would be outstanding.
The Voluntary Disclosure program has guidelines of who may qualify for this program. The involves if filers taxes are at least 1 year old, the disclosure will involve a penalty, which is understandable due to the fact that, agents will have to screen and work at least twice on the same packet and due to the delay in payment. This disclosure should be voluntary and it will need to be complete. These qualifications are helpful to those who would like to pay their bill to the Canadian government. And it seems to be a very fair program that will allow a large amount of people and businesses to clear their tax situation. The disclosure must be voluntary and that means that the agency should not have contacted the filer to fix their tax issues and that the filer would disclosure all taxes disclosure. It is ideal for those who made a mistake on prior year tax return that they later found out and instead of being pressure by the agency to pay big penalties, the person or business will have a chance to fix their mistakes, pay a small penalty and have their taxes for that year cleared by the CRA.
An application to the CRA voluntary disclosure is an official process and it is a great process and is expected to be very well administrated in order to work properly and be helpful for all those who may need the program. When somebody consults with the tax solutions in Canada the screeners will review your packet and administrates your Voluntary disclosure request. This program has a high rate of approval between Canadian citizens and it is proven to work for the advantage of the majority of the Canadians and the government as well, who will receive payment for taxes due without the burden to harass citizens and business for late payment. It gives people the power to contact the agency before the agency contacts them. Which is a very good advantage to those involved.