In response to a data breach that led to a 2022 lawsuit, the Internal Revenue Service issued a rare apology to thousands of other rich Americans, including billionaire hedge fund director Ken Griffin.
IRS Apologizes to Billionaire Ken Griffin
The IRS, along with hundreds of other affluent Americans, settled a lawsuit with billionaire hedge fund director Ken Griffin, which was followed by the apology, MassLive reported.
The government said in the statement that IRS contractor Charles Littlejohn gave press leaks of confidential material.
In a recent watchdog study, the situation is deemed "unconscionable," as regular taxpayers who become victims of identity theft have to wait longer than that to receive a resolution from the agency, but their wait times are getting worse.
According to the IRS Taxpayer Advocate Service, the agency's internal watchdog, it currently takes the IRS nearly two years to verify and process a legitimate tax return after thieves steal someone's personal information and file a fake tax return in an attempt to flee with refund money.
This is because there is an increasing backlog of cases.
IRS Backlog Grows to 500,000 Identity Theft Cases
According to National Taxpayer Advocate Erin Collins, the average wait time for the IRS to settle identity theft claims has increased to roughly 22 months from roughly 19 months a year earlier.
Based on the report, as of April, there were around 500,000 cases in the backlog, up from about 484,000 instances unresolved at the end of previous year, MarketWatch reported.
Griffin filed his complaint in federal court in Miami one and a half years ago. The CEO and founder of Citadel claimed that after hearing worries from Treasury Department watchdogs, the IRS neglected to implement data security measures.
After an official contractor stole the tax returns of thousands of well-known people, Griffin filed a lawsuit against the IRS.
This led to a series of articles on the tax dodges of the wealthy and well-known in the publication ProPublica.
Join the Conversation