Why can IRS tax refunds after death take over a year? What to do

Washington DC, 18 February 2026: Death is an extremely difficult time for a family. When you also have to think about financial matters, the stress increases even more. In the case of tax returns with the Internal Revenue Service (IRS) in the US, heirs of deceased individuals have to wait an average of 444 days (more than a year). Ordinary taxpayers get their refund in just 21 days with electronic filing and direct deposit. Here’s the main reason and what to do about it.

The main reason for the delay in the deceased person’s tax refund

The IRS requires Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer) to give a tax refund in the name of a deceased person. This form needs to be attached to the deceased person’s final tax return, which shows the income, debts and credits for the year they died.

Special exception:

• If the surviving spouse of the deceased is filing a joint return, Form 1310 is not required.
• Even if you are the court-appointed personal representative (executor/administrator), exceptions still apply.

Filling out Form 1310 triggers a manual process at the IRS. Since this work isn’t automated, it creates a backlog. According to the Treasury Inspector General for Tax Administration (TIGTA) report, between 2021 and 2024, over $1.3 billion was pending for refund in 440,443 cases of deceased individuals. About 9% of these cases were more than two years old.

A huge backlog had built up for the 2022 and 2023 returns because Paper Form 1310 wasn’t processed. The form is taken out separately and processed, but paperwork causes delays.

Average processing time and current status

• Standard return: 21 days
• Return of deceased person: average 444 days (January 2021 to July 2024)

By July 2024, 43% of cases are 1 to 2 years old

According to the National Taxpayer Advocate (NTA), 70% of the backlog has been cleared by August 2025. Only about 1,100 returns are left to be processed. The IRS is now prioritizing older cases.

What to do? Step-by-step guidance

1. File the final tax return
Fill out Form 1040 (or 1040-SR) for the deceased person’s year of death. Clearly mention the date of death above. Write the word ‘Deceased’.

2. Attach Form 1310 (if needed)

• Submit it online (e-file) or on paper.
• Keep the death certificate with you, even though you don’t always have to send it to the IRS.
• Keep the court appointment letter or Form 56 (Notice Concerning Fiduciary Relationship) with you.

3. Check the return status
Use the ‘Where’s My Refund?’ tool on IRS.gov. If you e-file, you’ll get an update within 24 hours.

4. Get in touch if there’s a delay

• IRS Helpline: 800-829-1040
• If you’re facing financial hardship, call the Taxpayer Advocate Service (TAS) at 877-777-4778. Fill out Form 911 to ask for help.
• Keep the documents (death certificate, will, bank statements) ready.

5. After receiving the payment
The refund gets deposited into the heirs’ bank account, or a cheque is sent. The cheque can come in the name of “The Estate of [Name]”.

IRS reforms and future hopes
The IRS has started a new programe for 2025 tax filing:

Automatic refund is possible once Form 1310 is processed.

• Give priority to old cases.
• Special training for employees.

NTA says, ‘Losing a loved one is difficult. Filing the final tax return shouldn’t add extra trouble.’

Family should make preparations before death (preventive tips)

• Combine all bank and investment accounts.
• Keep tax documents, passwords and accountant contacts in one place.
• Update the will and appoint a financial advisor
• Talk to a CPA (Certified Public Accountant) or a financial planner to draw up a plan.

A delay in the deceased person’s tax refund can create financial problems for the family, but with the right paperwork and timely contact, the process can be faster. The IRS is currently focusing on reducing the backlog. For more information, check IRS.gov/deceased-person.

This news has been created for educational purposes for heirs. For professional advice, consult a tax professional.