Document text
Request for Relief from Instalment Interest and Penalty
[YOUR FULL NAME]
[YOUR ADDRESS]
Social insurance number: [SIN]
Phone: [PHONE]
[DATE]
Canada Revenue Agency
[ADDRESS FOR TAXPAYER RELIEF REQUESTS]
Re: Request under subsection 220(3.1) of the Income Tax Act — instalment interest and penalty, tax year [YEAR]
Notice of assessment dated [DATE OF NOTICE]: instalment interest $[AMOUNT], instalment penalty $[AMOUNT OR 0].
I ask the CRA to cancel the instalment interest and penalty charged for [YEAR]. Form RC4288 is enclosed.
What happened
Until [DATE YOU STOPPED WORKING] I was employed and tax was deducted from my pay. In [PREVIOUS YEAR] and [YEAR BEFORE THAT] my net tax owing was $[AMOUNT] and $[AMOUNT], and I received refunds.
In [YEAR] my income came from [PENSION / RRIF / OTHER SOURCES] with little or no tax deducted.
I filed my [YEAR] return on [FILING DATE] and paid the full balance of $[AMOUNT] on [PAYMENT DATE], before April 30.
I did not know that instalments were due during [YEAR]. [I did not receive an instalment notice / I received a notice on [DATE] but did not understand that payments were due during the year].
Why I ask for relief
This is the first year my situation required instalments. I have filed and paid on time in earlier years.
I paid the whole balance as soon as I knew the amount, without delay.
[Optional: paying this interest causes financial hardship: describe income and expenses briefly.]
Please also check
whether instalments were required at all: under subsection 156.1(2) they are not required if net tax owing was $3,000 or less in each of the two preceding years;
that the interest was calculated on the method giving the least amount, as subsection 161(4.01) provides.
If the CRA finds the interest was calculated wrongly, please treat this as a request to correct the assessment.
Enclosed:
Form RC4288
Notice of assessment for [YEAR] and for the two years before
Proof of payment dated [PAYMENT DATE]
[Pension or RRIF slips / other documents]
Yours truly,
[YOUR FULL NAME]
Signature: ____________________
For me: after sending
[ ] Sent on [DATE] by [MAIL / ONLINE]; copy kept
[ ] Checked net tax owing for the two previous years (ITA s. 156.1(2)(b): $3,000 or less in each means no instalments)
[ ] Objection deadline, if the numbers are wrong: later of one year after my filing-due date and 90 days after the notice (ITA s. 165(1)(a))
[ ] Relief window: ten calendar years after the end of [YEAR] (ITA s. 220(3.1))
[ ] Next instalment dates if still needed: March 15, June 15, September 15, December 15 (ITA s. 156(1))