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

CNBC · Jun 24, 2026, 8:50 PM

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  • More than 500,000 victims of tax-related identity theft are currently awaiting resolution from the IRS, the report said.
  • 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.

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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.

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