IRS Fails Identity Theft Victims Again
ABUSE OF THE WEEK
ABUSE OF THE WEEK
ABUSE OF THE WEEK ABUSE OF THE WEEK
“Identity theft victims aren’t asking for special treatment; they’re simply asking for the basic service the IRS is supposed to provide and too often fails to deliver. We need IRS accountability because when the IRS falls short on its promises, taxpayers get hurt. Victims of identity theft didn’t create this crisis, and they shouldn’t be the ones stuck paying for it.”
The Taxpayer Advocate Service (TAS) released its mid-year report to Congress, reflecting on the 2026 filing season and outlining key priorities for 2027.
While the findings do indicate some operational improvements, there is substantial work to be done. In particular, the report found that victims of identity theft faced some of the longest, most frustrating experiences with the IRS this year. This isn’t new: TAS has called these delays “unconscionable” for years, and the problem is only getting worse. Victims are waiting an average of 20 months for resolution, and more than 500,000 Identity Theft Victim Assistance (IDTVA) cases remain open today — leaving taxpayers to endure real financial hardship alone, with little to no communication with the IRS, inconsistent case handling, and no end in sight.
The IRS itself has acknowledged that its IDTVA process isn’t working effectively and is now shifting cases out of the unit and onto general Customer Service Representatives (CSRs), raising a new set of concerns before the old ones are even resolved. TAS emphasizes that CSRs must receive adequate training and resources to properly manage these cases and warns that similar shake-ups in the past have led to fragmented handling, repeated internal transfers, and inconsistent treatment that has left victims more confused.
The Alliance for IRS Accountability is deeply concerned with the implications of this transition. Without meaningful safeguards, oversight, and accountability, identity victims risk facing the same uncertainty and delays under a new name. As the IRS works to fix its own system, taxpayers also risk exposure to real financial harm, adding yet another burden onto those already navigating one of the most stressful processes in tax administration.
These findings are a clear warning sign, and AIA is paying attention. Our organization stands with TAS’s call to reduce the burden on identity theft victims heading into the 2027 season. It’s time the IRS fixes what it’s let go on for far too long.
Read the full report here.
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