Are you holding funds in a separate trust account for a client, perhaps as security for a builder’s lien, from an estate or trust distribution, or from the sale of real estate? Did you know that you will now need to file a T3 income tax return, unless exempt, for that trust account by the end of March 2024? New rules in the federal Income Tax Act (ITA) will require T3 returns to be filed for many types of trusts for taxation years ending on or after December 31, 2023. Multiple T3 returns may need to be filed by a single law firm, and each can take considerable time to prepare. Read our previous Notice to Lawyers to learn more about the changes and exemptions.