Deceased Never Filed Past Tax Returns: Executor Duties in Canada

Going through a loved one's papers, you may discover that they never filed their income tax return for one or more earlier years. That is stressful on top of grief, and it is natural to wonder whether it is now your problem as executor.

The short answer is that it can be. This article explains what the CRA expects from the legal representative, which deadlines apply, how penalties and interest work, how to prove you have authority to act, and why unfiled returns matter before you pay out the estate.

This article covers Canadian federal tax law, which applies in every province.

What the executor is responsible for

A final return must be filed for every person who dies. If a T1 return for a year before the year of death was not filed, the legal representative must make sure it is filed as well.

The legal representative is usually the executor named in the will (in Québec, the liquidator). That person is responsible for ensuring returns are filed and balances owing are resolved.

• The final return covers the year of death, and income earned up to the date of death goes on it even if received after death, unless filed on an optional return.
• Each unfiled earlier year needs its own return.
• Income the estate earns after death is generally reported on a T3 return, not the final T1.

Deadlines for the missing returns

Other prior-year returns that were already due keep their original filing and payment dates. That means they are already late, and penalties and interest may be running. Filing them as soon as you can limits the damage.

There is a special rule when death happens early in the year, before the previous year's return was filed. For example, if the person died in 2026 on or before the 2025 T1 filing due date and the 2025 return was not filed, the 2025 return and any balance owing are due 6 months after the date of death, on the same calendar day. A single final return for 2026 is also required, so two returns are needed.

If there is a surviving spouse in that early-death case, their own 2025 return has the same filing due date as the deceased's 2025 return. However, any balance the survivor owes must still be paid by April 30, 2026 to avoid interest.

For the final return itself, the usual dates depend on when in the year the person died, and some are different if the person was self-employed.

Penalties and interest

The penalty for a late return with a balance owing is 5% of the balance plus 1% of the balance for each full month late, up to 12 months. It may be higher if a late-filing penalty was assessed on the deceased's return for any of the 3 previous years.

Interest is compounded daily on unpaid amounts from the day after the due date until paid, and interest also applies to late-filing penalties.

Filing on time avoids the penalty even if the balance cannot be paid in full. So if the estate is short of cash, do not hold back the return. File it, and deal with payment separately.

If the lateness was caused by circumstances beyond your control, the CRA may cancel penalties or interest. You request this through the CRA's cancel or waive penalties and interest process. Whether your situation qualifies depends on the facts.

Proving you have authority to act

You must notify the CRA of your role before accessing the deceased's tax records. The CRA asks for the following documents, each showing the deceased's SIN:

• A death certificate or funeral director's statement of death.
• A legal document naming the executor or liquidator, such as the complete will or a court document confirming who may act for the estate. Which court document applies depends on where the person lived, so it is worth confirming with a lawyer.
• The estate's updated mailing address, if it has changed.

Each document must also show your RepID if you want online access. Processing generally takes 28 business days. You can submit documents online through Represent a Client or by mail or fax to the deceased's tax centre.

If there is no will or executor, or a court appointment is pending, file Form RC552 and mail it to the deceased's tax centre. Approval under RC552 applies only to CRA matters, and provincial or territorial estate law governs who may apply to the courts. A final return can be filed before probate.

Why unfiled returns block distribution

Before distributing property, the legal representative must obtain a clearance certificate confirming the deceased's amounts have been paid or secured. If you distribute without it, you are personally liable up to the value distributed, and the Minister may assess you at any time.

You should apply for the certificate only after all returns are filed and assessed, amounts owing are paid or secured, and nothing is outstanding under adjustment, objection, relief or appeal. An unfiled prior-year return therefore holds the certificate back.

In practice, this means beneficiaries may need to wait. It is worth explaining this to them early.

What to do next

• Gather the death certificate and the will, and apply for probate if needed.
• Notify the CRA of your role and the death.
• Find out which years are unfiled, and collect slips such as T4 and T5.
• File the missing returns and the final return as soon as possible.
• Consider a penalty and interest relief request if circumstances beyond your control caused the delay.
• Hold off distributing property until you have a clearance certificate.

Because unfiled years can involve estimates, penalties and personal liability, speaking with a lawyer or accountant before you distribute anything is wise.

Frequently asked questions