Thread: Interest and penalties on deceased person tax return

I live in Canada but the answer to my question may be answerable here.

My father died in 2005, the executor was my cousin. It took her 4 years to do his personal income tax return. As a result, there is $4,000 in interest and penalties. I know that an executor can take money out of the estate to satisfy all the debt, however this debt did not exist at the time of his death and is there only because the executor took her time doing it. She refuses to pay and expects me to pay (I inherited the estate, which is not yet in my name). There is no money left in the estate's account because it has all dwindled paying interest and minimum payments on the debts.

I intend to re-mortgage the house in my name and pay the remaining debts so that the house doesn't need to be sold.

In Canada there is no time limit to complete this stuff as far as I know.

My question is, who is responsible for this $4,000? The estate or the executor? In my mind, the executor should be paying this because it is only because of her total and complete laziness that it exists in the first place.

Any advice would be greatly appreciated!

I think you need to contact the executor and try to get more details.