The Treasury Inspector General for Tax Administration (TIGTA) conducted an inquiry and reported in August 2023, that more than 20,000 taxpayer accounts were locked in error due to human and computer problems at the IRS, preventing these taxpayers from accessing their IRS accounts because the IRS had deemed them deceased. TIGTA made recommendations to improve the processes and did a follow up report recently noting that nearly all of the 69 million taxpayers with a deceased lock on their accounts were accurate. In fact, only .2 percent were locked in error, yet that still represents 13,500 taxpayers.
It is important that accounts are locked following the death of a taxpayer, to protect them from fraud and from someone assuming their identity. So, while burdensome to get a locked account unlocked, the larger concern is having someone file tax returns on behalf of a deceased taxpayer and claim unlawful refunds in future years. To read the full report, click here.
