Identity Theft Case Delays DECIMATE Taxpayer Trust

IRS employee abuses

“When taxpayers experience delays in receiving their refunds, particularly lower-income taxpayers who qualify for significant refundable tax credits, they may be unable to meet their basic living expenses or, in the case of business taxpayers, they may face cash flow problems and be unable to pay their employees or other expenses. Timely delivery of taxpayer refunds is a core IRS responsibility.”

- Erin M. Collins, National Taxpayer Advocate

For victims of tax-related identity theft, this isn’t just a bureaucratic delay; it’s months or even years without refunds they rely on to pay rent, cover groceries, and manage basic living expenses. That real-world impact is why the IRS’s failure to resolve these cases quickly matters so deeply.  

The 2025 Taxpayer Advocate Report found that the average wait time for victims of tax-related identity theft stretches to nearly two years, despite indicating that a 90-day resolution timeframe is appropriate. The Taxpayer Advocate has raised concerns about the delays within the IRS’s Identity Theft Victim Assistance (IDTVA) unit for several years, yet meaningful improvement has failed to materialize. In the meantime, taxpayers are left in financial limbo through no fault of their own. 

The IDTVA plays an essential role within the agency by helping taxpayers who have become victims of tax-related fraud resolve those issues through timely service and fair treatment. When this process breaks down, it doesn’t just delay refunds, it undermines confidence that the system works for honest taxpayers. This work helps build and maintain trust in the integrity of the tax system – particularly at a time when public confidence in federal institutions is strained and the IRS faces increased politicization. Reinforcing confidence in IRS operations is critical to sustaining the voluntary compliance framework on which the nation's tax system depends. 

The IDTVA’s continued failure to adequately address excessive wait times has led to prolonged financial hardship and further eroded trust in the IRS. These delays not only reflect agency inefficiencies, but they also signal to taxpayers that their cases are not being treated with the care or urgency that they deserve. 

AIA calls on the IRS to take immediate corrective action to address yet another instance of complacency and abuse. Fixing these delays isn’t optional — it’s essential to protecting taxpayers and restoring trust in the system. Strengthening IDTVA performance should not be treated as a mere recommendation; it is essential to protecting taxpayers and preserving the credibility of a system that depends on public trust.  

Read the full Taxpayer Advocate Report here. 

If you, or someone you know, has experienced a specific IRS abuse and wish to flag the instance for potential inclusion in future Abuses of the Week, contact us with the details at: info@irsaccountability.org