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Level 3
posted Mar 29, 2021 9:52:06 PM

Father died and bank rejected his tax refund. What can we do?

 

My father died soon after filing his federal tax return but before receiving his refund.

 

When we notified his bank of death, the bank said it would “freeze” the account and not allow any further deposits or withdrawals.

 

So when his direct-deposit refund showed up at the bank, it was rejected.

 

What happens to his tax refund?

 

Is there a way for the family to claim it?

 

 

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1 Replies
Level 15
Mar 30, 2021 9:52:44 AM

When the deposit bounces back to the IRS, it will mail a check to the address on the return.  However, since he will be the payee, it now becomes part of his Estate.  Please see a local attorney for assistance.