When a family’s 99-year-old father, Barry Miller*, passed away, they expected grief, paperwork, and estate logistics. But they didn’t anticipate a drawn-out battle with the IRS over a $10,000 tax refund. What seemed like a straightforward process quickly became a year-long maze of missing documents, rejections, and bureaucratic roadblocks.

This case highlights the hidden complexities of filing a tax return for a deceased individual and offers valuable lessons for anyone navigating similar terrain.

A simple refund becomes a complex process

Barry, a retired man with a modest retirement income, passed away with tax withholdings still on file. The Miller family sought to file his final return and request the refund due. But the moment they submitted the paperwork, they hit a wall.

The IRS rejected the return.

Why? Barry had been issued an Identity Protection Personal Identification Number (IP PIN), a six-digit code assigned by the IRS to individuals who’ve experienced identity theft or who specifically request it. No one — not even family members or estate executors — can file on the individual’s behalf without this number.

The Millers had no idea Barry even had an IP PIN.

The elusive IP PIN and the lost letter

Unlike most digital security or authenticator tools, the IRS still (at the time of writing this article) issues IP PINs in the old-fashioned way: by paper letter mailed each January. In Barry’s case, this letter had indeed arrived but was mixed with his belongings. The family hadn’t known to look for it, and Barry hadn’t mentioned it.

The Millers thought they had everything in order: death certificate, executor documents, and Form 1310. However, the missing IP PIN was a small detail that created a big problem, bringing everything to a standstill. Without it, the IRS automatically rejected each tax filing attempt.

Seeking help: the Taxpayer Advocate Service

After repeated rejections, the family turned to the Taxpayer Advocate Service (TAS) — a lesser-known but beneficial branch of the IRS dedicated to resolving complex tax issues.

They made an in-person appointment, bringing a comprehensive folder of every relevant document they could find. The IRS representative reviewed the information and seemed satisfied. According to the agent, everything looked in order, and the return should be processed soon.

Instead of a resolution, the Millers were met with a flood of new letters from the IRS repeatedly requesting the same previously submitted documentation, and there was still no progress.

A late discovery in a pile of papers

Roughly six months later, while sorting through more of Barry’s files, the family finally discovered the original IRS letter containing the elusive IP PIN, sitting in a stack of unopened mail.

Armed with the IP PIN, the Millers attempted again to file the return. Yet even with this breakthrough, the refund has still not arrived, more than a year after Barry’s passing.

“This refund isn’t make-or-break,” the family noted. “But it would help. There were a lot of expenses tied to his passing, and we’ve jumped through every hoop to claim what’s owed.”

What they didn’t know: the importance of Form 56

Along the way, the family discovered another critical piece of the puzzle: Form 56, the IRS document used to notify them of a fiduciary relationship between an executor and a deceased person’s estate.

While Form 1310 is necessary to claim a refund, Form 56 formally alerts the IRS that someone is legally authorized to act on behalf of the deceased. Without this notice on file, even the most thoroughly prepared return may encounter delays or rejection.

Looking back, the family suspect that not filing Form 56 earlier may have contributed to the repeated issues.

Finally, a resolution

After a long period of uncertainty, the family were able to close this chapter. With help from their congressperson, who assigned a staffer to investigate, the IRS processed the return, and the refund (plus interest) arrived within two weeks.

Lessons learned: what every family should know

This experience revealed more than just bureaucratic inefficiency, it highlights how many families aren’t prepared when it comes to managing a loved one’s financial affairs after death. The Miller’s experience provides helpful reminders:

• Stay proactive: If a parent or elderly relative is in declining health, try to gain visibility into their financial affairs, including tax documentation and IRS correspondence.
• Ask the hard questions: It might feel uncomfortable to ask aging loved ones about taxes, legal documents, and mail, but it can save months of trouble later.
• Organize in advance: Knowing where key documents are — such as tax records, IP PINs, executor paperwork, and legal notices — can significantly streamline the process.
• File the right forms: At a minimum, families should be aware of:
  
  • Form 1310: Required to claim a refund for a deceased individual
  • Form 56: Notifies the IRS of a fiduciary relationship
  • Death certificate: Must be submitted with the return
  • Court or probate documentation: If applicable, especially for larger estates

The Miller family’s experience is more than just a tale of red tape. It’s a reminder that navigating the financial aftermath of a loved one’s death requires more than paperwork: it requires preparation, persistence, and patience.

For families with elderly relatives, it’s never too early to start asking questions and organizing essential documents so you can concentrate on honoring your loved one’s life.

*Names and relationship have been changed at the request of our client