Losing a loved one is a profound challenge, compounded by the IRS's protracted processing of tax refunds due to beneficiaries. Data reveals that from January 2021 to July 2024, the Internal Revenue Service averaged 444 calendar days to issue these refunds, a stark contrast to the 21 days for typical electronic filings. As of July 2024, over $1.3 billion in refunds were pending for 440,443 deceased taxpayers, with a significant portion delayed for over a year.
The primary driver for these delays is the manual processing required for IRS Form 1310, used to claim refunds on behalf of a deceased individual, unless specific exceptions apply. This manual intervention creates significant bottlenecks.
While the IRS has made progress in clearing its backlog, with over 70% of cases resolved as of August 2025, proactive measures can mitigate future issues. Experts advise individuals to organize essential financial information, consolidate accounts to simplify tax filings, and maintain updated contact lists for financial advisors or CPAs who can assist survivors. Being prepared by documenting all necessary information and account locations can be a crucial step in easing the administrative burden during a difficult time.