More than 500,000 victims of tax-related identity theft are waiting for relief from the Internal Revenue Service, with case resolution now taking nearly 20 months, according to a report to Congress released Wednesday by the National Taxpayer Advocate.
Tax-related identity theft occurs when fraudsters use a taxpayer’s stolen Social Security number to file a fraudulent tax return and claim an illegitimate refund.
Erin Collins, the National Taxpayer Advocate and head of the Taxpayer Advocate Service, said the prolonged delays are causing severe financial stress for affected taxpayers.
"For many low- and middle-income taxpayers, waiting nearly two years for a refund is not merely an inconvenience," Collins wrote in the report. "It can mean falling behind on rent, utilities, transportation costs, and other basic living expenses."
The report said victims often face frozen refunds, prolonged uncertainty and limited communication from the IRS while cases remain unresolved.
