After someone dies, notify the government programs and businesses they used. Cancel benefits payments and close or transfer accounts.
Does Social Security Notify the IRS of Death?
Yes, the Social Security Administration (SSA) does notify the IRS when someone passes away This information is crucial for the IRS to update its records and ensure that the deceased individual’s tax affairs are handled correctly In some cases, this notification can lead to the IRS issuing a CP01H notice.
What is a CP01H Notice?
A CP01H notice is issued by the IRS when it receives a tax return that contains a Social Security number (SSN) for an account that has been locked due to the death of the individual associated with that SSN, This typically occurs when the IRS receives information from the SSA indicating that the SSN belongs to someone who died before the tax year of the return submitted
Why Did I Receive a CP01H Notice?
You may have received a CP01H notice for several reasons:
- The IRS received information from the SSA indicating that the SSN on your tax return belongs to someone who has passed away.
- The IRS may have received conflicting information about the death of the individual associated with the SSN.
- There may be an error in the IRS’s records.
What Should I Do If I Receive a CP01H Notice?
If you receive a CP01H notice, it’s important to take action promptly. Here are the steps you should follow:
- Contact the Social Security Administration (SSA) to verify the death information. You can do this by calling the SSA at 1-800-772-1213 or visiting their website at www.ssa.gov.
- If the SSA confirms the death, you will need to provide them with the following information:
- Your name and contact information
- The deceased individual’s name and Social Security number
- A copy of the death certificate
- Once the SSA has corrected the information, you will need to follow the instructions on your CP01H notice to file your tax return. This may involve providing additional documentation, such as a copy of your passport, driver’s license, or Social Security card.
- If you believe that the IRS has made an error, you can contact them directly to discuss the issue. You can reach the IRS by calling 1-800-829-1040 or visiting their website at www.irs.gov.
Additional Resources
- Understanding Your CP01H Notice: https://www.irs.gov/individuals/understanding-your-cp01h-notice
- How to File a Final Tax Return for Someone Who Has Passed Away: https://www.irs.gov/newsroom/how-to-file-a-final-tax-return-for-someone-who-has-passed-away
- Social Security Administration: https://www.ssa.gov/
- Internal Revenue Service: https://www.irs.gov/
Frequently Asked Questions
- What happens if I don’t respond to a CP01H notice?
If you don’t respond to a CP01H notice, the IRS may take steps to collect the tax that is due. This could include wage garnishment or levying your bank account.
- How long does it take to resolve a CP01H issue?
The time it takes to resolve a CP01H issue can vary depending on the circumstances. However, you should expect it to take several weeks or even months to get the issue resolved.
- Can I get help with resolving a CP01H issue?
Yes, you can get help from a tax professional or the IRS. You can also contact the Taxpayer Advocate Service (TAS) for assistance. The TAS is an independent organization within the IRS that helps taxpayers resolve tax problems.
Government agencies and programs to notify of a death
For the majority of organizations and programs, you’ll need the deceased person’s Social Security number and certified copies of their death certificate.
The funeral director should report the death to the Social Security Administration (SSA) for you. If they do not, you must do this as soon as possible.
- SSA will notify Medicare.
- Any Social Security benefits the person was receiving will stop.
- All payments for the month the person passed away must be returned.
- When you call, you can inquire about Social Security survivors benefits.
Contact the state motor vehicles office to:
- Cancel the personâs license or ID
- Transfer the title of a vehicle the person owned
You must file the personâs final income tax return(s). Include all unreported income the person earned up to their date of death.
You can return the personâs passport to the Department of State (DOS) for cancellation. (See âHow do I cancel the passport of a deceased relative?â for instructions.)
- This helps prevent identity theft.
- If you would like, the DOS will return the canceled passport, or they may destroy it.
Contact the state social services office to cancel payments for benefit programs. These may include:
- SNAP (food stamps)
- TANF (welfare)
- Rental assistance
- Medicaid
Contact the local election office to cancel the personâs voter registration. This helps prevent voter fraud.
If the person was a veteran, you can contact the Department of Veterans Affairs (VA) about:
- Burial benefits
- Death benefits and survivor benefits
- Veterans life insurance
You must notify the VA to cancel these benefits:
- Compensation
- Pension
- Education
- Health
Report a military retireeâs death to the Defense Finance and Accounting Service (DFAS). They will:
- Stop monthly pension payments
- If the person was enrolled, send the Survivor Benefit Plan forms.
Contact the Office of Personnel Management (OPM) to:
OPM will help process any annuity due to survivors.
Notify the U.S. embassy or consulate in the country where the person died. They can help you communicate with local authorities and help with arrangements and documents. Learn more about how embassies can help following an American citizens death in a foreign country.
Financial institutions and other organizations to notify of a death
Report the personâs death to banks, credit card companies, credit bureaus, and other financial organizations. And contact utilities and places where the person had memberships and subscriptions. Learn from the Federal Trade Commission what to do about any debts the person had.