Report Highlights ‘Unconscionable’ IRS Delays for Identity Theft Victims

People walk past the U.S. Internal Revenue Service building in Washington, D.C., on November 14, 2025.

Elizabeth Frantz | Reuters

Victims of identity theft are experiencing “unconscionable” delays at the Internal Revenue Service, a situation that creates headaches and financial strain for many Americans, coinciding with significant staff reductions at the agency, according to a report submitted to Congress on Wednesday by the National Taxpayer Advocate, an internal IRS watchdog.

More than 500,000 individuals affected by tax‑related identity theft are currently awaiting resolution from the IRS, the report noted. The agency requires roughly 20 months — nearly two years — to close each case.

Tax‑related identity theft occurs when a thief files a fraudulent tax return using a stolen Social Security number to claim a refund.

This can trigger a cascade of administrative and financial difficulties for taxpayers, including the temporary withholding of refunds.

“For many low‑ and middle‑income taxpayers, waiting nearly two years for a refund is not merely an inconvenience — it can mean falling behind on rent, utilities, transportation costs, and other essential living expenses,” Erin Collins, the National Taxpayer Advocate, wrote in the report.

“For all taxpayers, this delayed process is frustrating, burdensome, difficult to navigate, and time‑consuming,” she added.

The IRS did not immediately respond to a request for comment.

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