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POST Bankruptcy income tax return

I read somewhere, that Trustee’s are no longer required to file your POST bankruptcy income tax return (the one at the end of your bankruptcy year) If your trustee is one who still does this return, are you able to opt to do this yourself. I would like to be able to so I may receive any income tax refund as this return would be completed after my discharge

Thank you

One Response to “POST Bankruptcy income tax return”

A licensed trustee said...

Different trustees take approaches to the POST bankruptcy income tax return.

For those of you who don’t what we’re talking about the following is a brief explanation.

When you file bankruptcy the date you file is treated like the end of the year for tax purposes. For instance, if you were to file bankruptcy today, May 24, then your trustee is required to file a tax return on your behalf for the period of January 1 to May 24 – this is called the PRE bankruptcy return. To get you back on the same year end as the rest of the country a second tax return has to be prepared this year that covers the period from May 25 to December 31. This is called the POST bankruptcy return.

Trustees are not legally required to file the POST bankruptcy return – although many do. When you file your assignment you may be asked to signed an “Authorization and Direction” form that is used to notify the Canada Revenue Agency that your trustee will be preparing your POST bankruptcy return and is entitled to keep the refund for your creditors.

You do not have to sign this form, but if you do not then you must make certain that you file the POST bankruptcy return by April 30 of the year after you file bankruptcy. If you do not sign this form your trustee cannot prepare your return on your behalf and therefore you must do it (or pay someone to do it) yourself.

If you signed this form when you filed your bankruptcy and now you have changed your mind you will need to meet with your trustee to discuss your options.