Instalment Payment Summary

So you’ve just received an Instalment Payment Summary from CRA. What should you do?
Speak to your accountant to determine why you are being asked for instalments. Did owe more than $3000 in taxes in 2009 as a result of inadequate payroll withholding or business income?
Secondly, assess whether that situation is expected to reoccur. If you plan to make a RRSP contribution to reduce the taxes owing or you expect to make less income, you are not required to pay the instalment. But beware, if after calculating your 2010 taxes you owe again, CRA will assess interest in any unpaid amounts from the planned instalment dates.

Several options exist to minimize instalments based upon your situation. Work with your accountant to set up an instalment schedule that works for you. If you are employed, speak to your employer about withholding additional taxes if you cannot make lump sum payments.

Summit CMA services clients throughout Toronto and the Durham Region including Pickering, Ajax, Whitby and Oshawa.