Every year, thousands of families deal not only with the death of a loved one, but also with all the associated paperwork—including the final tax return.
But small mistakes like missing forms or wrong signatures can lead to steel refund requests for months. And for grieving families, it can create unnecessary financial stress at a time when they are already under intense emotional stress.
Ann Tergsin, a reporter with The Wall Street Journalrecently shared his experience trying to settle his late father’s estate. All of this was accomplished without his 2023 tax refund of $686, which prevented him from settling his estate. At the time of writing the story, 19 months had passed since she applied for her return (1).
“Such delays are common for people sorting out the estates of their loved ones,” she wrote. But there are a few ways you can minimize tax-related delays.
From January 2021 to July 2024, the IRS processed 609,953 manual returns for deceased taxpayers. According to a report (2) by the US Treasury Inspector General for the United States Internal Revenue Service (TIGTA), it takes an average of 444 calendar days to process and issue these returns.
Of the 440,443 cases pending for return, 43% were pending for one to two years and 9% were pending for more than two years (2). For comparison, electronically filed Form 1040 returns are generally processed within 21 days, according to the IRS (3).
One of the hurdles Turgeson said she experienced, and a common one for other filers, was processing a Form 1310 claiming a refund due to a deceased taxpayer.
You are required to file Form 1310 unless you are the surviving spouse filing an original or amended joint return with the decedent or you are a personal representative filing the original Form 1040, 1040-SR, 1040-NR or 1040-SS for the decedent (which has your court certificate attached).
Previously, these forms had to be filed on paper, which required manual processing – and was a major cause of processing delays. For example, if an IRS employee requests a Form 1310, the taxpayer’s response will take three weeks, on average, to be forwarded to the employee once it is received by the IRS, according to the TIGTA report.
The IRS is trying to fix this delay, and Form 1310 can now be filed electronically when attached to Form 1040, 1040-SR, 1040-NR or 1040-SS.
Still, to make sure you take advantage of this more streamlined process, make sure your electronic files are properly filled out and submitted as attachments at the same time you file your tax return. If you file Form 1310 separately, you will still need to mail it.
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You can check the progress of your return at www.irs.gov if it’s delayed, Tergerison was told by Phyllis Jo Cobb, a tax specialist who represents taxpayers before the IRS, asking if anything can be done to expedite the return. It’s code, she said, because “please point to the person handling my case.”
To ensure speedy processing of your final tax return, make sure to send all required information to the IRS and that all forms are filled out correctly (4). This means:
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A court-appointed representative must attach a copy of the court document showing their appointment.
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A representative who has not been appointed by the court must include a Form 1310 if they are claiming a refund.
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Payment must be submitted if there is tax.
You may have no control over the IRS, but you can make life easier for your loved ones — while you’re still alive — by getting your paperwork ready ahead of time (so they don’t have to ask financial institutions).
“Today, many tax forms are accessed online, making it difficult to know what information is available and how to access it,” said Colleen Carcon, director of estate planning strategies at TIAA Financial Services. USA Today (5). Make sure your spouse or representative can easily find the information needed to file your tax return after you die.
Also, provide them with a list of your accounts and instructions on how to access those accounts. It’s worth consolidating accounts where possible because it can result in less complex filings and “also make it easier to manage your assets,” Carcon notes. Include a list of important contacts, such as your lawyer, accountant and financial advisor.
Finances are the last thing anyone wants to deal with when a loved one dies, but it’s a necessary reality. Preparing ahead of time and making sure the forms are submitted correctly goes a long way in reducing the burden.
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The Wall Street Journal (1); Inspector General of the United States Treasury for Tax Administration (2); IRS (3), (4); America Today (5)
This article provides information only and should not be used as advice. It is provided without warranty of any kind.
