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Honored Contributor
Posts: 33,581
Registered: ‎03-10-2010

Re: IRS Refunds

[ Edited ]

@FloridaPat wrote:

I hate to tell you this now but you should have never closed your mothers account for at least one year after her death. You also should have had the IRS check deposited into her account (unless you are not a signator on your mothers account), then you had no choice but to do it the way you did! Good luck!


@FloridaPat , soley held accounts should be closed when an estate is opened and all money transferred into an estate account.   You certainly don't want to leave any accounts open if they are earning interest because that interest will be reported under the social of the decedent's.  Also, most banks have someone checking obits, etc. and they know when a customer has passed and will freeze the account if it's only in the decedent's name.  

 

 

Honored Contributor
Posts: 33,581
Registered: ‎03-10-2010

@Jordan2 wrote:

My mother passed away January 2020. My sister and I filed tax returns for my mother for 2019 (she was alive) and 2020 ( for one month in 2020). We haven't gotten the checks yet, the accountant has been working on it. My sister got a call today from the accountant saying one check went out September 2021, the other March 2022. We have not received either of them. The checks may have been delivered to the house we sold over a year ago (although I'm sure we didn't put that address on the return). The accountant even insinuated maybe I got the checks and kept them, my sister told her I would never do that. Now they have to put a trace on the checks, I can't see a bank cashing the checks if someone took them as it is made out to my mother's estate. Has anyone experienced this?


@Jordan2 , if the check was sent to your mom's old address, the checks are probably sitting uncashed with the IRS because they will not forward those checks.  I am a paralegal and 90% of my work is probate.  We have pending issues with the IRS for nearly 3 years now on some estates.  They are a complete disaster. 

 

For the heck of it, check unclaimed funds for your state under your mom's name and the estate name.  I doubt the refunds would have been sent there this quickly but it's possible.   

Honored Contributor
Posts: 30,609
Registered: ‎03-20-2010

Re: IRS Refunds

[ Edited ]

@LizzieInSRQ wrote:

Congressional Representative?!? Yeah, i dont think that would be the correct path. The IRS would be more informative.


@LizzieInSRQ 

 

It depends on your Representative---years ago---we had a FANTASTIC guy with a top knotch staff---if there was a problem locally with a Social Security check or a veteran's benefit or another issue---he or his staff got on it and the problem was resolved immediately---good ole Henry G....but funny because for important votes in DC he was listed as "absent" a lot---ya cant have it all I guess---LOL

Animals are reliable, full of love, true in their affections, grateful. Difficult standards for people to live up to.”
Regular Contributor
Posts: 234
Registered: ‎05-01-2011

I suggest this to you, make an appointment to your local IRS office to check on your issue. Since the pandemic a lot of things have changed, look at the return and see if form 1310 was submitted as refund due to deceased taxpayer. Your accountant should have suggested that you not close the account for your mother for at least a year to get all of business affairs settled even if there is an estate. If you do have an estate account did you use the estate filing EIN or your mother's SSN. If you sold the house to someone or did a change of address to another address it was never changed at IRS. You have to do a change of address with the IRS as well. Since the pandemic things have changed a lot, I hope you can received the money because I have a feeling that those checks were sent back to the IRS.

Regular Contributor
Posts: 234
Registered: ‎05-01-2011

He can only do that if they gave him power of attorney, this happens a lot when people are doing tax returns for deceased family members. 

Regular Contributor
Posts: 234
Registered: ‎05-01-2011

Not all banks do that but some banks do keep accounts open for a year. Most banks do inform you when it is time to change names on decease person accounts. Even if the account was frozen those checks should have been deposited. The only checks that are not deposit are Social Security checks.

Honored Contributor
Posts: 33,581
Registered: ‎03-10-2010

@ladyann45 wrote:

Not all banks do that but some banks do keep accounts open for a year. Most banks do inform you when it is time to change names on decease person accounts. Even if the account was frozen those checks should have been deposited. The only checks that are not deposit are Social Security checks.


@ladyann45  we never advise our clients to keep bank accounts open in a deceased person's name for a year.  Bank accounts are closed and all monies moved into an estate account.  An IRS refund can be direct deposited into an estate account or a physical check sent.

 

No one should be taking advice from a bank as to when to close out a decedent's accounts.  They shouldn't be giving out that kind of advice. That's what an attorney is for.  Quite frankly, many bank employees are pretty clueless about this kind of stuff.  It's unbelieveable what our clients are told by bank employees. 

 

Depending on the amount of money in the accounts, you can end up causing a tax issue for the estate by continuing to leave accounts open and have income (interest) still being paid under a deceased person's social security number.