The IRS is currently under fire for its delay in handling identity theft cases. According to AP News, an independent watchdog within the agency is not particularly happy about this course of action and describes it as "unconscionable."

While overall improvements in taxpayer services during the 2024 filing season have been noted, as cited in the latest National Taxpayer Advocate report to Congress, delays in resolving identity theft issues remain a crucial concern.

Erin M. Collins, leading the organization tasked with protecting taxpayers' rights under the Taxpayer Bill of Rights, acknowledged progress but emphasized the persistence of troubling delays in assisting identity theft victims. 

The report showed that the IRS now takes more than 22 months on average to resolve self-reported identity theft cases, a downturn from previous figures over the past years.

The prolonged resolution times impact financial security by delaying tax refunds crucial for day-to-day expenses and medical bills and impede victims from accessing essential services like securing loans. 

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IRS on Identity Theft Cases

However, the IRS responded that while it acknowledges its strong financial support through the Democrats' Inflation Reduction Act to update and improve its operations, it continues to encounter difficulties because of recent budget reductions and controversies related to how its funding is allocated.

Analysts fear that further delays may lead to increased frustration among taxpayers and invite further scrutiny and criticism from lawmakers, advocacy groups, and the public, potentially triggering calls for additional reforms or funding reallocations.

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