If you are the trustee of a trust, or otherwise responsible for filing a “T3” trust income tax return, you need to be aware of the effect of 2020 being a leap year.
The deadline for filing the return for a trust with a December 31 year-end is often thought to be March 31, but it is not. It is 90 days after the year-end.
Because 2020 is a leap year, there were 29 days in February. As a result, the deadline is Monday March 30, not Tuesday March 31.
Missing the deadline by just one day can result in a 5% penalty for any unpaid tax, and can cause serious problems if certain elections that are required to be filed by the return deadline are not made on time.
This letter summarizes recent tax developments and tax planning opportunities from a third-party affiliate; however, we recommend that you consult with an expert before embarking on any of the suggestions contained in this blog post, which are appropriate to your own specific requirements. Please feel free to get in touch with Lee & Sharpe to discuss anything detailed above, we would be pleased to help.
