What to Do If You Haven’t Filed Your Taxes in a Few Years (or More) — Canada

Falling behind on tax filing can happen for many reasons—life events, business challenges, lost paperwork, health issues, or simply feeling overwhelmed. The important thing to know is this: you can still file your outstanding Canadian tax returns, and getting started often reduces stress, limits escalating costs, and restores access to refunds and benefits.

This guide walks you through a clear, practical plan for catching up—whether you’re an employee, self-employed, a landlord, or a business owner.

Note: This article is general information for Canada and is not legal advice. If your situation is complex (multiple years, business income, GST/HST, payroll, foreign income, or CRA enforcement letters), professional help is strongly recommended.

Why filing late is still worth it (even if you’re afraid)

1) You may be missing refunds and benefits

Many Canadians don’t realize they can lose out on money simply by not filing. The CRA uses your tax return to calculate benefits and credits—even if you had little or no income.
For example, you generally must file to receive the GST/HST credit.

2) CRA can take action when returns remain unfiled

The CRA’s Non-Filer Program can request returns and may take enforcement steps if they believe taxes are owing.
If you don’t file when required, CRA may also estimate and assess taxes owing under subsection 152(7)—and those estimates may not include deductions you could have claimed.

3) Penalties and interest can grow quickly

If you owe taxes, CRA charges compound daily interest starting the day after the due date.
Late-filing penalties can also apply when there is a balance owing.

Step-by-step: How to catch up on years of unfiled taxes in Canada

Step 1: Identify exactly which years are missing

Start by confirming which tax years are unfiled and whether CRA has already issued any notices. If you have access to CRA My Account, you may be able to view key tax documents and information slips.

If CRA has sent you any letters requesting returns, treat those as urgent—especially “demand to file” requests.

Practical tip: Make a simple list:

• Missing T1 personal returns (which years?)
• Any self-employed business years?
• Rental income years?
• Corporate years (T2)?
• GST/HST returns?
• Payroll (T4) filings?

Step 2: Gather slips and rebuild your records (even if you’re missing documents)

If you’re missing T4/T5/T4A slips

You can often retrieve copies through CRA once issuers have submitted them.
CRA also notes it does not issue slips and cannot post them until the issuer sends them.

If you’re self-employed or a business owner

Your success catching up depends on reconstructing income and expenses:

• Bank statements and credit card statements
• Invoices issued and received
• Mileage logs / auto expense support
• Home office details (square footage, rent/interest, utilities)
• Booking software exports (if any)

If you’re missing some items, don’t stop—your return can still be prepared using available records, and you can improve support as you recover documentation.

Step 3: File the outstanding returns (don’t wait until everything is “perfect”)

For most people, the best path is to file in chronological order (oldest to newest). This helps ensure carryforwards and balances flow properly.

Key rule: File even if you cannot pay. CRA explicitly warns that filing on time helps avoid the late-filing penalty—even when payment isn’t possible.

If you have multiple years unfiled, filing them promptly can also reduce the window where CRA may issue estimated assessments under the Non-Filer Program.

Step 4: Understand what penalties might apply (so you can plan)

Late-filing penalty (personal T1)

If you file late and owe tax, the basic late-filing penalty is:

• 5% of the balance owing, plus
• 1% of the balance owing for each full month late (up to 12 months).

Repeated late-filing penalty (if CRA issued a demand to file + prior penalties)

CRA indicates the penalty can be higher in repeat situations.
For repeat late filing where specific conditions apply (penalized in a prior period and received a demand to file), CRA describes:

• 10% of the balance owing, plus
• 2% per full month late (up to 20 months).

Interest

If you owe taxes, CRA charges compound daily interest starting the day after the due date, including on amounts from reassessments.

Step 5: If you can’t pay, set up a CRA payment arrangement

Once your returns are filed and assessed, you can request to pay over time. CRA provides payment arrangement options (including automated options for certain personal tax debts).

Important: CRA’s approach is generally more workable when you are current with filing. Filing first improves your negotiating position.

Step 6: Consider relief options (where appropriate)

1) Taxpayer relief (penalties/interest cancellation or waiver)

If events beyond your control prevented compliance, CRA may grant relief from penalties and interest.
Relief is generally limited to charges within the 10-year window.
The common CRA form used is RC4288 – Taxpayer Relief Request.

2) Voluntary Disclosures Program (VDP)

If the issue is not just “late,” but involves errors, omissions, or unreported amounts, the Voluntary Disclosures Program may provide relief on a case-by-case basis when you come forward to correct filings.
CRA also lists situations that may make an application ineligible.
CRA notes changes to the program effective October 1, 2025.

Special situations (where people get stuck)

If CRA already assessed you without a return (152(7) “estimated assessment”)

CRA may assess tax owing when returns aren’t filed, and those assessments may not include deductions you could have claimed.
In many cases, the path forward is to file the actual returns to replace estimates with real numbers supported by your records.

If you’re incorporated and missing T2 returns

Corporations can face failure-to-file penalties, including higher penalties when CRA issued a demand to file and there were penalties in the prior three years.
If your corporation hasn’t filed for multiple years, getting the T2 filings current is often step one before CRA will meaningfully deal with account balances.

If you’re registered for GST/HST and behind on returns

If you’re registered, you may still need to file your GST/HST returns for past reporting periods. CRA provides filing methods for GST/HST returns.

FAQ: Quick answers Canadians ask most

“How far back can I file?”

You can file late returns, but refund rules and limitation periods can apply. For example, the Income Tax Act sets a normal 3-year limitation period on issuing a refund or reducing an amount payable, with certain circumstances where CRA may consider beyond that.
This is one reason it’s smart to act quickly—delays can cost you refund opportunities.

“Can CRA garnish wages or bank accounts?”

CRA has collection tools, including garnishment mechanisms (Requirement to Pay / related actions) for debts.

“I had no income—do I still need to file?”

Often, yes—filing can be necessary to receive benefits and credits you may be entitled to.

How BOMCAS Canada can help you catch up—fast and correctly

If you haven’t filed taxes in years, the hardest part is usually getting started—and the riskiest part is filing rushed returns that miss deductions, misreport income, or create avoidable CRA issues.

BOMCAS Canada can help you:

• Identify missing years and filing requirements (T1, self-employed, rental, corporate T2, GST/HST)
• Reconstruct bookkeeping from bank statements and invoices
• Prepare and file outstanding returns accurately and efficiently
• Review CRA notices and estimated assessments
• Help you plan next steps: payment arrangements, and where appropriate, relief options

Contact BOMCAS Canada:
Website: https://bomcas.ca
Phone: 780-667-5250
Email: info@bomcas.ca

Bottom line

If you haven’t filed taxes in a few years (or more), the best move is to file the returns and get current—even if you can’t pay immediately. Filing restores access to benefits, reduces the chance of CRA estimated assessments, and puts you in a stronger position to deal with balances, penalties, and interest.