The CRA Just Explained What To Do If You Can't Pay Your Taxes This Year

If you missed Canada's tax deadline this year, or are struggling to pay your taxes, the Canada Revenue Agency (CRA) says it's here to help.

In a new notice shared with Canadians on May 18, the federal agency explained that there are several ways to sort out tax debt based on an individual's financial situation.

While this year's tax deadline passed on April 30, the CRA says there are still ways to pay.

The agency explained, "If you can't make any payment, your tax debt will grow with the addition of interest charges."

Those who are unable to pay their full tax debt upfront can consider making partial payments to the CRA, which would reduce the amount of interest owed on unpaid amounts.

Payment arrangements are also possible, allowing eligible taxpayers to spread out their payments over a period of time, based on their ability to pay off the debt. "The CRA will work with you on a payment arrangement that works for your situation," says the agency.

Credits or refunds towards outstanding debt can also be applied by the CRA, to help with any outstanding amounts owing.