Why IRS tax refunds after death can take more than a year and what to do

Losing a loved one is hard enough, but some are still forced to deal with the IRS more than a year later, records show.

After someone died, it took the Internal Revenue Service an average of 444 calendar days between January 2021 and July 2024 to issue refunds to the deceased’s beneficiaries, according to a report last year by the Treasury Inspector General for Tax Administration (TIGTA). That compares to the 21 days the IRS says it takes most Americans to receive their refunds during the regular tax season when they file electronically and use direct deposit.

Like everyone else, survivors of the deceased can look forward to reimbursements to help offset costs, including those associated with closing an estate or adding to an inheritance, experts said. As of July 2024, the IRS reported 440,443 cases in which a refund was due on a deceased taxpayer’s account. Together, the refunds totaled more than $1.3 billion. Nine percent of refunds due were older than 2 years, 43% between 1 and 2 years old, and 49% up to 1 year old.

“Losing a loved one is difficult and filing a final tax return should not create an undue burden at a difficult time,” the National Taxpayer Advocate (NTA), an independent taxpayer ombudsman, wrote in a blog.

Why does reimbursement after death take so long?

IRS Form 1310 to claim a federal tax refund on behalf of a deceased taxpayer must often be filed with the deceased’s tax return, unless you are a surviving spouse filing a joint original or amended return seeking the refund, or a personal representative confirmed by the court.

Form 1310 initiates a manual process within the IRS to process the refund, and bottlenecks can arise when refunds are handled manually, TIGTA said.

What is being done to expedite refunds?

The Tax Authorities have cleared the backlog. According to NTA, by August 2025, more than 70% of the backlog had been cleared and approximately 1,100 returns were waiting to be processed.

In addition, this year for 2025 tax returns, the IRS implemented a program to eliminate or significantly reduce the need for manual refunds for those claiming a deceased taxpayer’s refund, TIGTA said. Changes include allowing systemic refunds once Form 1310 is processed or other missing information is secured, the ability to find and prioritize overage cases, and better employee training to process the returns of deceased people.

What can Americans do before death to ease the burden?

While you can’t control processing at the IRS or other financial institutions you may need to request information from, there are steps people can take to speed up their tax filings, experts say.

One of the biggest hurdles for people is finding the information needed to complete a tax return for someone after death, says Colleen Carcone, director of Wealth Planning Strategies at TIAA.

“In the past, we would receive all of our tax forms in the mail so the person filing on behalf of the deceased could simply wait to pick up the mail and be assured that they had all of the deceased’s tax information,” she said. “These days, many tax forms are accessible online, making it difficult to know what information exists and how to access it.”

To make it easier for survivors, experts recommend people take the following steps while they are still alive:

• Keep detailed records. Include all information required to file your tax return and how you can obtain this information after death. “One of the greatest gifts you can give to beneficiaries is being organized, with an updated will and where all the accounts are located so they don’t have to spend a lot of time locating everything,” says Tyler End, managing director and co-founder of retirement consulting firm Retirable.
• Consolidate accounts. Fewer bank and investment accounts means fewer forms and entries on the tax return, which simplifies the tax return process. “As a bonus, fewer accounts can also make managing your assets easier,” Carcone said.
• Make a list of contacts who can help. Contact details for professionals such as accountants or financial advisors who have the necessary information and can assist with filing tax returns. “It may be worth hiring a CPA (certified public accountant) to get through this,” End said. “It’s not an automatic tax return.”
• Work with qualified professionals. They can guide you and your loved ones through complex financial decisions and tax matters before death, making the post-death process more manageable. “A financial advisor is like a quarterback of the financial ecosystem,” says End. “They can be a resource that knows everything you own: life insurance, bank accounts, mutual funds.”

Medora Lee is a money, markets and personal finance reporter at USA TODAY. You can reach her at [email protected] and subscribe to our free Daily Money newsletter for personal finance tips and business news, every Monday through Friday mornings.

This article originally appeared on USA TODAY: Why IRS tax refunds after death can take more than a year and what you should do

Reporting by Medora Lee, USA TODAY/USA TODAY

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