I have to file 27 years worth of taxes for an individual and was just wanting to make sure about the clients “name” on the returns prior to the year of death. Do I have to change all of the information section to state “Estate of the Late …” or can I just leave it at the clients name?
There are no taxes owing or to be refunded on any of the years, so I just want to make sure that all of this is filed and closed properly.
Has CRA requested that the taxes be brought up to date? if not, is it necessary to file? My parents quit filing when they had nothing to report.
I am with obhorst. If they don’t owe any taxes or get any refunds why would you file that far back? I have occasionally filed (once or twice) filed back 10 years for client to get refunds but unless the CRA is asking for the returns I wouldn’t bother. I can possibly see a couple years of nil returns if a death clearance certificate if required for probate but not 27 years worth. If I were doing this (because the CRA demanded 27 years of nil returns - although I’d still call them and ask why they wanted 27 years of taxes given the situation) I’d put Estate of the late on all the returns.
Who is the Executor?
What are the Executors instructions?
The Executors lawyer would have informed them that not obtaining a tax clearance certificate would be financially and legally dangerous.
The Executors lawyer would have also informed them about the required legal duties of the Executor in accounting for all assets and liabilities.
The current and past data would need to be evaluated in terms of the above by the Executor in making their decision on what to file prior to forwarding a TX19 request to CRA.
CRA will be processing returns for periods up to date of death on the basis of SIN.
May I ask what software you are going to use to years before taxcycle can be used?