What TIGTA found
The IRS aims to resolve identity theft claims within 120 days. From FY 2023 through FY 2025, taxpayers waited about 20 months on average. In a sample of 114 cases closed in FY 2023, average processing took nearly two years, most of it spent waiting in unassigned inventory for an available assistor.
The delays cost the government about $124.2 million in refund interest from FY 2023 through FY 2025. The IRS sent acknowledgment letters in only 33 of the 114 sampled cases, and TIGTA estimates more than 50,000 taxpayers did not receive status updates. In FY 2024 the IRS stopped sending acknowledgment letters for taxpayer-initiated cases because of fraud concerns.
The IRS agreed with two of three recommendations, including faster case assignment and acknowledgment letters for all affected taxpayers.
What it means for your clients
- Silence is normal, not resolution. A client may hear nothing for months. Transcripts show where the case stands even when the IRS does not write.
- Refunds and balances can both be stuck. A frozen refund can also hold up a payment plan, an offset, or a lender’s income verification.
- Hardship can speed things up. When the delay causes financial hardship, the Taxpayer Advocate Service may be able to help, and a well-documented request matters.
- Prevention comes after cleanup. An Identity Protection PIN helps keep it from happening again.
Next Step services that fit
- Tax Identity Theft Recovery. The IRS account cleaned up after a fraudulent filing, and protected going forward.
- IRS Letter Response. Identity verification and follow-up letters answered correctly and on time.
- Credit & Refund Check. Refunds and credits confirmed once the account is released.
Source: Treasury Inspector General for Tax Administration, The Process To Resolve Identity Theft Cases Is Long, Costly, and Frustrating for Taxpayers, Report No. 2026-100-050. Reports are available at tigta.gov.
This summary is for tax professionals and is general information, not tax or legal advice for a specific situation. Figures are as reported by TIGTA. Results for any client depend on their facts, documentation, and IRS discretion.