Groundhog Day

[BobKamman]

August 2016: Client, a widow in her 80s, gets a CP01H notice from IRS that “we are unable to process your [2015] tax return as filed. Our records indicate that the person identified as the primary taxpayer or spouse on the tax return was deceased prior to the tax year shown on the tax form. Our records are based on information received from the Social Security Administration.”

Her filing status was single. Her husband died in 2014. The 2015 return had her correct SSN. It took until 2017 to convince IRS that she was still alive. They sent her to the Social Security office, which sent her back to IRS.

April 2021: Same client again receives a CP01H for 2019. (This was during Covid.) Same problem: They think she is deceased. It advises her to contact Social Security Administration to correct this situation. (SSA continues to send her monthly checks.) For 2019 IRS cashed her check, but did not send her rebate checks. A letter to the Service Center with copies of 2016 and 2017 correspondence eventually solved the problem.

July 2025: Client is now in her 90s and still very much alive. IRS once again sends a CP01H telling her that “we received information from the Social Security Administration (SSA), the Social Security number (SSN) of the primary or secondary taxpayer on the return belongs to someone deceased prior to the tax year of the return. As a result, we locked the account to prevent identity theft. If you believe this information is in error, you must contact the SSA first to correct the situation.” (She owed tax, sent a check with the return, they cashed it.)

Anyone have any suggestions on how to deal with this? Obvious solution to me is that IRS and SSA need to be punished by cutting their budgets so they don’t have anyone left to create these messes.

Do you think she is eligible to claim the senior deduction on her 2025 return?

[abctax55]

I had something similar happen to me.   The 'Great State of Alabama' tagged my first marriage as a death.  At some stage, Alabama's computers talked to SSA's. I got a call from SSA stating um, er... our records show you are dead.  I finally had to get Diane Feinstein's (CA Sr senator at the time...) office involved. I have a letter from SSA "all good now but we can't promise it won't happen again".

This is the cliff notes version of a two year process, and a 3" file I have on the mess.

So my suggestion is to try a Congressman/woman that would love a 'PR' story of helping out a little old lady. 

Keep us posted..

[IRonMaN]

Did you have a nice funeral?  Not a lot of people can go to their own funeral and take pictures of the event. 😁

[qbteachmt]

My mother's husband died in 2022. Her efiled 2023 taxes were rejected due to including a deceased person, which she did not. It's only her, and she's not dead yet. She gets SSA payments. She's 89 and doing well.

They also rejected 2024 efile for the same reason. I've gone to SSA and IRS locally, I was told the SSA needed to "force an update" to their database, and her 2024 e-file was resubmitted and still bounced. I went to the local IRS again, the guy told me, "yeah, it looks good now."

It bounces right away. There's never a paper followup. Every paper filing we do, we include copies of a letter from the SSA stating, "This is your SSN, use only this number" and the legal name change document (for her use of the prior married name) and a copy of the 1099-SA.

She pays estimates and withholding, lets refunds ride to the next year, paper files, pays any balance due, so she's square with the IRS, whenever they decide to finally do the math.

[BobKamman]

@abctax55 The first time it happened we turned it into a Congressional, which solved the problem.  But she has outlived Senator McCain.  It was more urgent then, because a refund was involved.  This time it's not our problem that they want to freeze the account.  I have replied to the current letter with copies of the two earlier notices and her Social Security card, and put the ball back in their court at least for now. 

@qbteachmt Are your mother's Social Security benefits now based on her late husband's earnings record?  I think that's where the glitch is, when they refigure the payments to widows.  The SSA-1099 will have the SSN of the deceased spouse somewhere on it, followed by a "D", and that is considered part of the survivor's account number.  I should be keeping copies of these, but I haven't.  

[abctax55]

@IRonMaN 

Thought one was -  Where the hell has all the money I've paid into the system ended up?

Thought two was - hmmm, is this my chance to disappear?

Along the way, every time I applied for a credit card, or a loan I warned them in advance that if I showed up dead that it really wasn't fraud so don't call the police.

More recently, I've been fearful that this little issue might pop up when applying for benefits.

[qbteachmt]

"SSN of the deceased spouse somewhere on it, followed by a "D""

Thanks for the idea, but I it's her own claim and I still checked. It reiterates her # followed by an A, which I would like to assume means "Alive" or "active" so we'll see what 2025 brings.