We believe that the appropriate course of action for your customers is to file a claim for the refund from the Illinois Department of Revenue (Illinois DOR) using Form-1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. We spoke with a representative from the Illinois DOR, who advised that submitting a Form-1310 would be appropriate here. If your customers submit this form, their small estate affidavit, and proof of their son’s death, the State will reissue the check to the deceased son’s estate or to the small estate affiant.
We do not recommend cashing the tax refund check made payable to the deceased non-customer. Typically, cashing a check payable to a non-customer is a business decision. However, under the Uniform Commercial Code (UCC), your knowledge of the payee’s death revokes your authority to collect on the check.
For resources related to our guidance, please see:
- Uniform Commercial Code, 810 ILCS 5/4-405(a) (“Neither death nor incompetence of a customer revokes the authority to accept, pay, collect, or account until the bank knows of the fact of death or of an adjudication of incompetence and has reasonable opportunity to act on it.”)
- Illinois Department of Revenue – (800) 732-8866