Can you get a CRA payment arrangement for several years of tax?

Yes, people do get payment arrangements for a stack of years. CRA wants a balance it can collect, which means the returns have to be filed so the number is real. An arrangement on an arbitrary assessment is a weaker conversation than an arrangement on filed returns, because the assessment is often too high and CRA knows you have not complied. File, then call collections with a number.

An arrangement is not forgiveness. Interest generally continues to compound at the prescribed rate while you pay. Missing a payment can end the arrangement. Missing a new filing can end it too. CRA can also issue a requirement to pay — a garnish to your employer or your bank — when the debt sits unpaid. No one can honestly guarantee that an account will not be frozen.

What collections usually asks

Have the answers before the call. A vague “I can pay something” is how people agree to a number they cannot keep, then default.

• The total balance, by program: personal tax, HST, payroll. They are not one pot.
• Your monthly income and the necessary expenses. Be accurate. Inflated rent is obvious.
• A payment you can make on the same day each month.
• Confirmation that the next return will be filed on time. This is the condition people break.
• Any refund from a later year. CRA will usually keep it and apply it to the debt.

Get the returns in, then the plan

Tax Everyday prepares the years and writes down the balance the notices show. We do not negotiate a fantasy. A straightforward personal year is $90 plus HST. Several years plus a business are quoted. Once the notices arrive, you can ask CRA for the arrangement, or ask us to look at the figures with you first.

If HST or payroll source deductions are part of the debt, say so at the start. Those trust amounts are collected more aggressively than ordinary income tax. The plan has to reflect that.