Behind on taxes or unfiled returns: what should I do?
Gather your slips and records, do not ignore letters, and talk to us before contacting the tax agencies. A delay can lead to penalties and interest when a balance is owing; even without a balance, some benefits can stop or be delayed. Voluntary disclosure and relief options need to be considered separately with the Canada Revenue Agency and Revenu Québec.
Which penalties and interest can apply?
The Canada Revenue Agency (CRA) late-filing penalty is 5% of the balance owing plus 1% per full month of delay, up to 12 months. For repeat offenders, it can reach 10% of the balance owing plus 2% per month, up to 20 months.
For personal income tax, Revenu Québec’s late-filing penalty is 5% of the balance owing plus 1% per full month of delay, up to 12 months. In the fourth quarter of 2026, the interest rate at both agencies is 7%, compounded daily.
Why file if I do not owe a balance?
With no balance owing, there is no late-filing penalty, but filing still matters: some benefits can stop or be delayed.
The Canada Child Benefit stops if you do not file; your spouse or common-law partner must file too. The GST/HST credit, now called the Canada Groceries and Essentials Benefit since July 2026, requires a filed return.
Quebec’s solidarity tax credit also requires filing. It can be claimed until December 31 of the fourth year after the year concerned.
CRA: the Voluntary Disclosures Program
CRA rules in effect since October 1, 2025 distinguish unprompted from prompted applications. An eligible unprompted application provides 100% penalty relief and 75% interest relief. An eligible prompted application can provide up to 100% penalty relief and 25% interest relief.
Apply using form RC199. The disclosure must be voluntary and complete, and estimated tax must be paid. It cannot be made during an audit and can generally cover up to 10 years back.
A free pre-disclosure discussion is available. Talk to us before contacting the CRA to review your records and the possibility of applying.
Revenu Québec: a separate voluntary disclosure program
Under Revenu Québec’s rules in effect since December 18, 2025, apply before any audit or investigation. If accepted, penalties and prosecution are waived, but all tax must be paid.
Interest is still charged; partial interest relief may apply for older years. Ask us what could apply to your situation. The program is generally usable only once.
Do not transfer CRA program terms to Revenu Québec’s program: they are separate programs.
What if extraordinary circumstances caused the delay?
Extraordinary circumstances, financial hardship or an agency error can support consideration of a relief request. CRA taxpayer relief has a 10-year limit.
At Revenu Québec, form MR-94.1-V is used to request cancellation or waiver of interest or penalties. This is separate from a voluntary disclosure.
How do I prepare to catch up?
Gather the tax slips and records needed for your unfiled returns. Do not ignore letters from the agencies.
Talk to us before contacting the tax agencies. We can discuss catching up and possible steps with each agency without confusing their programs.
Check before acting
Confirm the unfiled years, balances owing, letters received and whether an audit or investigation exists. Check CRA and Revenu Québec conditions separately, including whether the disclosure is voluntary and complete, tax payment and program limits.
Also check affected benefits, your spouse’s or common-law partner’s filing, and deadlines for claiming the solidarity tax credit or requesting relief. This page provides general information, not advice tailored to your situation.
Frequently asked questions
Should I file if I do not owe any tax?
Yes. With no balance owing, there is no late-filing penalty, but some benefits can stop or be delayed. The Canada Child Benefit, Canada Groceries and Essentials Benefit and solidarity tax credit require a filed return.
Are the CRA and Revenu Québec voluntary disclosure programs identical?
No. The CRA distinguishes unprompted from prompted applications. Revenu Québec has its own program, requires all tax to be paid and still charges interest, with partial relief possible for older years. Check the conditions separately.
Where should I start with unfiled returns?
Gather your slips and records, do not ignore letters, and talk to us before contacting the tax agencies.
Sources
- CRA — Late-filing penalty:
- CRA — Changes to the Voluntary Disclosures Program:
- CRA — IC00-1R7, Voluntary Disclosures Program:
- CRA — Taxpayer relief: Who can apply:
- CRA — Canada Child Benefit: Get payments:
- CRA — GST/HST credit, now the Canada Groceries and Essentials Benefit:
- Revenu Québec — Late-Filing Penalties:
- Revenu Québec — Voluntary Disclosure Program:
- Revenu Québec — Changes to the Voluntary Disclosure Program, December 18, 2025:
- Revenu Québec — MR-94.1-V:
- Revenu Québec — Claiming the Solidarity Tax Credit:
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