How to Fill Out Form TX19 for a Clearance Certificate in Canada

You are close to finishing the estate and want to distribute safely. A CRA clearance certificate is how you protect yourself from personal liability for tax the estate still owes.

This article walks through when to file Form TX19, what CRA expects with it, and where it goes. Follow the instructions on the current form itself, and ask a lawyer or accountant if your estate is complicated.

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

When to submit Form TX19

A legal representative must obtain a certificate before distributing property in their possession or control. A representative who distributes without it can be personally liable for the unpaid amounts, up to the value distributed.

Do not file too early. CRA does not issue the certificate for an estate unless the required returns are filed and assessed and all amounts are paid or secured, and the request should not be sent with the tax returns because that delays their assessment. The circular says not to file Form TX19 until the notices of assessment are received, subject to exceptions it lists.

The certificate is generally not issued if the estate cannot cover all tax, interest and penalties owing.

Before you start

• Required returns are filed and notices of assessment received.
• Any reassessments you requested are received.
• Income taxes, CPP contributions, EI premiums, interest and penalties are paid or secured.
• Legal documents proving your status as representative are ready.
• If the deceased had a GST/HST number, Form GST352 is prepared as well.

The legal representative is typically the executor named in the will, or the registered liquidator in Quebec. If there is no will or executor, an administrator may be appointed by the courts.

Information and attachments CRA wants

Complete the form using its instructions, and attach the following for an estate:

• The signed will with any codicils, renunciations, disclaimers and probate documents, or the administrator appointment if there is no will.
• Proof of your status as legal representative.
• A detailed list of assets at the date of death, including jointly held assets and RRSPs or RRIFs, with adjusted cost base and fair market value at distribution.
• A statement of distribution to date and the proposed distribution of any holdback or residual.
• Names, addresses and SINs of the beneficiaries of non-cash property.

If you are waiting for a court appointment, you can ask CRA to recognize you for tax matters by submitting Form RC552, but this covers CRA matters only and not other estate duties, and for an intestate estate the clearance certificate request still requires the administrator appointment (letters of administration or verification). How much to hold back is a judgement call, so discuss it with your advisor.

Where to send it

You can submit online. In Represent a Client, use Submit documents, then Representative related, and answer No to the case or reference number question. Executors can also use their own My Account, choosing Submit documents, answering No and selecting Other. You can instead mail or fax to the regional tax services office.

Street and postal addresses for each office are set out by CRA. If there is more than one representative and you file offline, Form AUT-01 must be signed by all legal representatives. If you are answering a CRA information request, include a cover page with the requesting officer's name and tax services office.

After you submit

CRA acknowledges the request within 45 days, and assessment can take up to 120 days if all documents are provided, though an audit may be needed first. If no certificate has arrived, it was denied, or no officer has contacted you within 120 days, phone CRA at 1-800-959-8281 for an individual T1 or trust T3.

A denial states what is missing or what action is required, and you can reapply once the issues are resolved. You do not need a certificate before each distribution if enough property remains to cover any liability, which is the basis for a partial distribution with a holdback. If new property turns up after a certificate is issued, you need another certificate before distributing it, because a certificate covers only property controlled up to the request date.

Frequently asked questions