Identity theft victims face 'unconscionable' IRS delays, report says

People walk past the U.S. Internal Revenue Service (IRS) building in Washington, D.C., U.S., Nov. 14, 2025. Elizabeth Frantz | Reuters Victims of identity theft face "unconscionable" delays at the Internal Revenue Service, a dynamic causing headaches and financial hardship for many Americans that comes amid steep staffing cuts at the federal agency, according to a report to Congress published Wednesday by the National Taxpayer Advocate, an internal IRS watchdog. More than 500,000 victims of tax-related identity theft are currently awaiting resolution from the IRS, the report said. The agency is currently taking about 20 months — nearly two years — to close their cases, according to the report. Tax-related identity theft happens when someone files a tax return to claim a fraudulent refund by using a taxpayer's stolen Social Security number. It can set off a cascade of administrative and financial issues for taxpayers, including temporarily withheld tax 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 basic 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 wrote. The IRS didn't immediately return a request for comment.