The IRS has improved taxpayer service and technology after receiving additional funding, but the National Taxpayer Advocate’s annual report to Congress highlights significant delays in supporting victims of tax-related identity theft.
Victims are waiting nearly 19 months for the IRS to process their returns and issue refunds, with identity theft resolution times reaching 556 days. The report attributes these delays to resource shifts, especially the reassignment of 572 workers to focus on telephone service in fiscal 2023.
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IRS Commissioner Danny Werfel acknowledges the issues and emphasizes the importance of adequate resources. The looming government shutdown deadline and potential IRS funding cuts add urgency to addressing these challenges. The delays disproportionately impact lower-income individuals relying on tax refunds, exacerbating financial hardship.
The National Taxpayer Advocate calls for timely assistance to victims and emphasizes the IRS’s responsibility to protect their rights.
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