If you are concerned about over-contribution to RRSP, tax arrears, penalty payment, filing an objection and negotiating payment arrangements with CRA, we are just a call away!
As competent tax consultant well versed with all aspects of audits, tax problems, penalty and other dispute processes, we can handle any CRA related task - simple or complex.
What happens when you over-contribute to RRSP?
The CRA permits a penalty-free over-contribution of up to $2,000 to RRSP. If your contributions exceeded this limit, there is a 1 percent monthly penalty tax.
In this case, you can pay the tax and report the over-contribution by filing Form T1-OVP which stands for “Individual Tax Return for RRSP Excess Contributions.”
If penalty tax is not paid within 90 days to the CRA, the penalty levied goes up to 5 percent of the balance owed in addition to a compounding daily interest and 1 percent of monthly balance.
You can also request a penalty tax waiver with Form RC4288, (Request for Taxpayer Relief – Cancel or Waive Penalties or Interest). The other option available is to withdraw your excess contributions.
Count on us when the going gets tough!
If all of these options sound confusing, just get in touch with us at SAR Accounting & Tax Solutions! Our tax specialists in Calgary, Certified Public Accountants, PBAs, are always on hand to help you to solve all CRA matters.
In addition to advising and assisting you on filling up Form T1-OVP or Form RC4288, we, as a reputed CRA tax problem solution provider, also assist you in writing to the CRA to explain the reasonable error that led to excess contributions and what steps are being taken to eliminate the error.
When every minute counts when it comes to tax-related matters, you can entrust us to handle all aspects of RRSP contributions, penalty payment or tax waiver in quick time.
You can put your trust in us in any other matter involving the CRA such as: