You may be feeling guilty or ashamed about filing late returns going back a few years, but there’s probably a good reason you fell behind.

Why Do People File Late?

It starts with the first one…

Lots of people who normally stay on top of their taxes end up slipping one year because life throws something big at them. When your job, your health, or your relationships are in turmoil, filing taxes just doesn’t rank high on the list. The trouble is, once that first deadline is missed, the late returns can stack up. Even after the storm has passed, the backlog feels heavier each year, and what started as one missed return can snowball into a mountain that keeps growing.

Physical and Emotional Stress

The biggest disruptions often come from a major illness or accident that leaves you physically unable to keep up with everyday responsibilities. But not all setbacks are physical. Emotional upheavals can hit just as hard. A bout of depression, the end of a marriage, or the death of someone close can shake your world and make it nearly impossible to focus on something like taxes.

Or you may be caring for someone who is injured, ill or dying. Caregiving is one of the most important things you can do in life. But the concern for others combined with the demands of caregiving itself consume time and energy and are a common trigger for missing a tax filing deadline.

Disasters, Fires and Floods

And then there are the less common—but equally overwhelming—events like a fire or a flood. In the middle of that kind of crisis, your energy goes into cleanup, dealing with insurance, replacing what was lost, and maybe even finding somewhere new to live. On top of it all, disasters often wipe out your records and paperwork—the exact things you need when it comes time to file your taxes.

So what do you do?

Believe it or not, CRA understands

It’s important to know that the Canada Revenue Agency (CRA) does recognize that life disruptions can cause people to file returns late and often grants leniency in these cases. If you decide to seek relief from amounts owing to CRA you may be asked to explain why you fell behind, and the types of events we’ve been discussing are all recognized by CRA as significant sources of distress and legitimate explanations for late filing.

While CRA will often waive penalties and interest in cases like these, it doesn’t change the fact that you still have to file a return every year if you owe tax, or if you want to collect refunds or the credits and support payments you’re entitled to.

I have a video here about facing the difficulties of filing old returns and why it’s worth doing.

CRA will help if you talk to them

If CRA is already contacting you about filing old returns, you can ask for a deadline extension and work with them to get your affairs in order. If the tax, penalties, and/or interest are too onerous, you can submit your returns under the Voluntary Disclosure Program (VDP) or apply for interest relief under the Taxpayer Relief Provisions.

Our Free Guide Will Get You Started

If you don’t know where to start, check out our free guide to getting back on track.

There is always a first time missing filing. As years go by, the job of catching up gets bigger and bigger and a single missed return often becomes several. If this has happened to you, remember that this does not make you a bad person, even if you’re late by many years.