The Internal Revenue Service (IRS) is facing increased scrutiny over prolonged delays in resolving identity theft cases, with current resolution times averaging approximately 20 months. According to the National Taxpayer Advocate’s Fiscal Year 2026 Objectives Report to Congress, nearly 387,000 identity theft victim assistance (IDTVA) cases remain unresolved following the 2025 tax filing season.

These delays have left many taxpayers—particularly low-income individuals—in extended financial uncertainty. National Taxpayer Advocate Erin M. Collins emphasized that in fiscal year 2023, 69% of affected taxpayers had adjusted gross incomes at or below 250% of the federal poverty level. “Victims entitled to refunds are waiting nearly two years to receive them,” Collins wrote, noting that many rely on refunds to cover essential living expenses.

The delays involve two primary categories of identity theft cases. The first includes returns flagged as potentially fraudulent by IRS filters, requiring the taxpayer to authenticate their identity. These are typically resolved in a few months. The second, more complex category involves returns filed by identity thieves using stolen taxpayer information to fraudulently claim refunds. These cases often take significantly longer—averaging 602 days—to resolve.

The ongoing backlog and lengthy resolution times have placed added pressure on tax professionals, who must help clients navigate the verification process and manage expectations. For many practitioners, that includes maintaining detailed records of communication with the IRS and identifying cases eligible for expedited handling due to financial hardship.

Collins has called on the IRS to take aggressive action, recommending a targeted reduction in IDTVA case cycle times. Her office is urging the agency to bring average resolution times down to 120 days by the end of 2025, and to reach a sustained average of 90 days by the end of 2026.

Although IRS leadership has repeatedly identified identity theft case processing as a priority, the agency’s ability to address the backlog may be hampered by resource constraints. The IRS has experienced a 25.9% reduction in staffing since January 2025, affecting all departments—including those tasked with identity theft resolution.

The prolonged delays are prompting broader conversations around IRS funding, process automation, and accountability. Policymakers and stakeholders are calling for increased transparency and performance benchmarks, along with investments to modernize IRS systems and improve taxpayer services.

Until reforms are implemented, taxpayers and practitioners are being advised to take proactive steps: respond promptly to IRS identity verification requests, ensure accurate documentation, and seek assistance from the Taxpayer Advocate Service in hardship cases.

While the IRS continues to work toward long-term solutions, the growing backlog and slow case processing times remain a significant concern for affected individuals and tax professionals across the country.

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