Tax returns in the year after bankruptcy
When we filed for bankruptcy (in 2006), our tax return was obviously prepared on paper by the trustee (our 2006 return). We were told that the year following our bankruptcy (this year) we could not file our taxes electronically, we have to submit a paper return, and the year following that things will return to normal and we can file electronically again.
Is the information we were given correct? And assuming it was, what is the reason for this? Why does our tax return have to filed on paper this year? Why can it not be done electronically?
This is correct, it takes CRA a long time to update their internal records and simply won’t accept these returns electronically (in most situations).
For more information as to why you would have to contact CRA directely.