Overview
If the IRS diverts your tax refund to pay a deceased relative’s unpaid liabilities, the first goal is to understand why the offset happened and whether you have a right to recover part or all of the money. In my practice working with taxpayers, this usually falls into two patterns: (1) the refund belongs to someone who filed a joint return with the deceased (joint-return liability), or (2) the refund was offset by the Treasury Offset Program (TOP) because the IRS matched records to outstanding debts. (See IRS guidance on offsets at IRS.gov.)
Immediate steps to take
- Read the IRS notice carefully
- The IRS or Bureau of the Fiscal Service will send a notice explaining the offset. Keep the notice—its codes and dates will tell you which agency and debt triggered the offset. (Treasury Offset Program and IRS notices are described on the Treasury and IRS sites.)
- Gather documentation
- Death certificate for the deceased
- Copies of the tax return(s) in question
- Proof of your relationship (marriage certificate if applicable) or executor letters if you represent the estate
- Bank statements showing where the refund was deposited
- Determine why the offset occurred
- Joint return: If you filed a joint return with the deceased, the IRS can apply refunds to satisfy the joint liability unless you successfully claim relief (innocent spouse, separation of liability). More on relief options is available on IRS.gov.
- TOP offset: If the offset came from TOP for unpaid federal or state debts (or federal student loans, child support), you will be told which type of debt was involved.
- If you filed jointly: consider an injured spouse claim or relief
- Injured spouse: If you filed a joint return and the refund belonged partly to you, file Form 8379 (Injured Spouse Allocation) to request your share back. You can attach Form 8379 to a new tax return or file it separately; it’s specifically designed when a spouse’s portion is being taken for the other spouse’s past-due debts. (See Form 8379 details at IRS.gov.)
- Innocent spouse or separation of liability: If you believe you are not responsible for tax caused by the deceased spouse, review IRS relief options and consider professional help.
- If you are not a spouse or joint filer
- If the refund belonged to you but was offset because the IRS linked it to a deceased relative’s debt, contact the IRS and the Bureau of the Fiscal Service immediately and submit a written request for review with supporting documents (death certificate, copies of your return). In many cases you will need to show you are not legally responsible for the deceased person’s liabilities.
How to contact agencies
- IRS: Start with the phone number on the offset notice or general IRS help lines. Be ready with your tax ID, notice number, and documentation.
- Bureau of the Fiscal Service/Treasury Offset Program: If the offset notice identifies TOP or the Treasury, follow the notice instructions to dispute or request a refund. The notice will normally list the agency handling the offset.
Timeline and expectations
- Processing times vary: offset reviews and injured spouse claims can take several weeks to a few months. If you file Form 8379 with the return electronically, processing is generally faster than by mail.
- If the IRS determines the offset was erroneous or you are entitled to a share, they will issue a refund or reallocate the funds.
Common mistakes to avoid
- Waiting too long: Respond promptly to notices and file required forms without delay.
- Sending only originals: Send copies of documents unless the agency specifically requests an original.
- Assuming automatic liability: You are not automatically responsible for a deceased relative’s debt unless you signed for it or filed joint returns that create joint liability.
Practical checklist (what to send)
- Copy of the IRS offset notice
- Your tax return copies for the year(s) involved
- Death certificate for the deceased
- Proof of relationship (marriage certificate, birth certificate) or executor appointment
- Completed Form 8379 if applicable
- A short cover letter explaining your request and listing the enclosed documents
When to get professional help
If the offset involves large sums, joint-return liability disputes, or estate complications, consult a tax attorney or enrolled agent. In my experience, cases involving estates or contested liability are resolved faster and with fewer procedural errors when handled by a professional.
Related resources
- Guidance on offsets and refunds: IRS general guidance on offsets and refund offset information (IRS.gov).
- Consumer protection context and additional steps: Consumer Financial Protection Bureau (cfpb.gov) covers related consumer rights.
Internal resources
- Read more on what to do when the IRS offsets your tax refund: What to Do When the IRS Offsets Your Tax Refund (https://finhelp.io/glossary/what-to-do-when-the-irs-offsets-your-tax-refund/)
- Tips to protect future refunds from state and federal offsets: How to Protect Your Tax Refund from State and Federal Offsets (https://finhelp.io/glossary/how-to-protect-your-tax-refund-from-state-and-federal-offsets/)
Quick FAQs
- Can I get my refund back? Often yes, if you can show the money was yours (for joint returns, file Form 8379). If you signed joint liability, recovery may be limited.
- Do I owe the deceased relative’s debt? Not automatically. Liability depends on whether you co-signed, filed jointly, or were otherwise legally bound.
Final note and disclaimer
This article explains common steps to challenge or recover a refund applied to a deceased relative’s debt and cites general IRS and federal processes. It is educational and does not replace personalized legal or tax advice. For advice tailored to your situation, consult a tax professional, enrolled agent, or attorney. Sources: IRS.gov; Treasury/Bureau of the Fiscal Service; Consumer Financial Protection Bureau.
