Tax ID theft victims have had to wait almost 2 years for IRS refunds

Welcome to Extreme Investor Network, where we provide unique insights and information to help you navigate the world of personal finance. Today, we are discussing the concerning rise in tax identity theft cases at the IRS and the steps the agency is taking to improve service for victims.

As of April, the IRS had a staggering 500,000 unresolved identity theft cases, with victims waiting more than 22 months for resolution and refunds. This delay has been exacerbated by the challenges of the Covid-19 pandemic, causing significant hardship for taxpayers, especially lower earners. In fact, nearly 70% of the cases involved taxpayers with an adjusted gross income at or below 250% of the federal poverty level.

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National Taxpayer Advocate Erin Collins has called out the IRS for its delays in helping victims, noting that the backlog of identity theft cases remains a significant ongoing service gap. However, the agency has outlined plans for “faster service” to address these issues. This includes dedicating more resources to work cases, reviewing processes, and engaging with stakeholders to prevent evolving tax-related identity theft threats.

While identity theft cases are complex and take time to resolve, the IRS acknowledges that increased funding has put them in a better position to tackle these cases more quickly. Additionally, the agency has issued a warning to tax professionals to protect themselves from identity theft criminals who could be targeting them and their clients.

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At Extreme Investor Network, we understand the importance of safeguarding your financial information and staying informed about the latest developments in personal finance. Stay tuned for more exclusive insights and tips to help you secure your financial future.

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