Colorado woman mistakenly declared dead by Social Security Administration deals with tax challenges

Grieving a loved one and managing their estate is a difficult enough process. But for one Douglas County woman, reporting her mother's death led to her own life being mistakenly ended on paper. She is still dealing with the fallout today.

When Judy Olson lost her mom in February of 2021, she put aside grieving to follow instructions her mother left in a "toes up file."

"Here are all the things you need to do when I die," said Olson.

First on the list was notifying the Social Security Administration of her mother's death. The person on the phone asked for both Olson's and her mother's Social Security numbers.

"I said why do you need my information? He said to verify who you are and that you're related," said Olson.

Next, Olson went to the bank to liquidate her mother's trust, where the manager broke some shocking news.

"'Judy, you've been banking here for 15-20 years so we know who you are, but when we pulled up your account, you are considered deceased,'" said Olson.

Still very much alive, Olson was locked out of her accounts.

"Why did that happen? How did it happen?" asked Olson.

Olson brought every piece of identification she could think of to the Social Security office to arrange her resurrection.

"The lady I spoke to was very nice, she apologized profusely and she said that the only way she could think of that this could have happened was the person on the phone accidentally marked me as deceased. She said 'It's clear you are you and we'll get it taken care of,'" said Olson.

After two weeks, Olson had access to her accounts again.

"Social Security reinstated my life so I had all that done," Olson said.        

She thought the ordeal was behind her, save for the occasional joke.

"Somebody would pipe up, 'Well at least you're not dead like Judy,'" said Olson.

Until she filed her mother's 2021 taxes in 2022 and never received the return.

"'We're working on your account, we need an additional 60 days to send you a complete response.' This is a different date, same letter, 60 days," Olson said, as she read through various letters from the IRS.

Olson doesn't know if the problem is related to her now-reversed death.

"They went into my Social Security and said 'Yes, you were marked deceased, you're not anymore, so we can get going on everything,'" said Olson.

She's called and visited the office multiple times and even re-filed in 2023.

"'We're sorry but since we have no record of receiving your tax filing from the period above, we must ask you to file again,'" Olson read from another letter.

But she still hasn't received the nearly $4,000 she's owed.

"We're still waiting, and it still says 'in process' when I go online and check it," said Olson.

Or the closure she's been waiting three-and-a-half years for.

"Just some peace of mind. It kept me from really acknowledging my mom's death in an emotional way. And as trustee, I felt like I had to do everything the right way and get it done for everybody. It did definitely push back my mourning process quite a bit," said Olson.

An IRS spokesperson told CBS News Colorado they can't legally comment on an individual's taxes but suggests Olson use their "Taxpayer Advocate Service" for help.

A spokesperson for the Social Security Administration says the agency makes a small number of mistakes in death reports and works to correct them when they're made aware of them.

"Approximately 3.1 million deaths are reported to the Social Security Administration each year. Of these millions of death reports, we receive each year, less than one-third of 1% are subsequently corrected," the spokesperson said.

The Social Security Administration recommends anyone who finds themselves mistakenly declared dead visit their nearest Social Security office as soon as possible with proof of identification.