Filing Taxes for Multiple Years – When to Do It and How to Get It Right

Failing to file taxes or making errors over several years is more common than you think—especially for newcomers, freelancers, or small business owners in Canada. But don’t let fear delay you. The CRA (Canada Revenue Agency) has support programs and clear steps to help you fix past tax issues properly.

1. When Should You File Back Taxes?

You should file or refile past tax returns if:

• You forgot to file taxes for one or more years.

• You discovered errors in a previous return: incorrect income, missed expenses, or unclaimed credits.

• You received a request or audit notice from the CRA.

• You want to amend your return to receive a refund or reduce your tax owing.

⛔ Note: If you wait too long, some tax benefits or refunds may no longer be available—typically after 10 years.

2. Will You Be Penalized for Filing Late Taxes?

The CRA encourages people to voluntarily correct past returns. If you come forward before they contact you:

✅ You may avoid penalties and interest through the Voluntary Disclosures Program (VDP).
✅ You’ll be treated fairly if you have valid reasons for delays.

However, if the CRA finds out first:

❌ You could face steep penalties, interest charges, or reassessments.

3. How to File Back Taxes the Right Way

Step 1: Identify the Years You Need to File

• Check your CRA MyAccount for missing years.

• Gather documents: T4, T5 slips, income summaries, expense records.

Step 2: Prepare Your Returns

• Use tax software or a tax professional to calculate the correct amounts.

• Use T1 Adjustment Request (T1-ADJ) if you only need to correct minor details.

Step 3: Submit Through the Voluntary Disclosures Program (VDP)

• Use CRA Form RC199 or apply online.

• Include a clear explanation of your situation and all relevant documents.

4. Need Help? Don’t Do It Alone

Filing back taxes is sensitive and complicated. Mistakes can cost you refunds or trigger CRA scrutiny.

TikiTax can help you:

• Identify exactly which years need correction.

• Prepare your documents correctly, following CRA standards.

• Represent you with the CRA to negotiate penalties if needed.

✅ Conclusion

Filing past-due taxes may seem overwhelming, but taking action now is the only way to avoid penalties and protect your financial future.

Don’t delay — act smart, act today.