IRS delays in resolving identity theft cases are 'unconscionable,' an independent watchdog says
An independent watchdog within the IRS reports that while taxpayer services have vastly improved, the agency is still too slow to resolve identity theft cases
WASHINGTON — An independent watchdog within the IRS reported Wednesday that while taxpayer services have vastly improved, the agency is still too slow to resolve identity theft cases, delays that are “unconscionable."
Overall, the 2024 filing season went smoothly, according to the latest National Taxpayer Advocate report to Congress, especially after the IRS received a massive funding boost provided by the Democrats’ Inflation Reduction Act that President Joe Biden signed into law in August 2022.
“Not to be overly dramatic, but during the last four years, I believe we have progressed from a place of despair to a place of hope and optimism for the future of the agency and therefore for taxpayers,” said Erin M. Collins, who leads the organization assigned to protect taxpayers’ rights under the Taxpayer Bill of Rights.
Still, she said, “IRS delays in resolving identity theft victim assistance cases are unconscionable."
The report details the federal tax collector's performance in modernizing its technologies, the speed with which it answers its phones and the rate it sends out refund checks, among other things.
The time it takes to resolve self-reported identity theft cases has worsened since the previous report in January, when it was nearly 19 months.
As of April, the IRS took more than 22 months to resolve these cases and had roughly 500,000 unresolved cases in its inventory, according to the report.
It said further harm could befall identity theft victims, who are often dealing with other related issues. For instance, tax refunds can be delayed, contributing to
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