Tax-related identity theft is creating massive delays for victims trying to get their refunds—some waiting nearly two years as the IRS shifts its priorities.
According to National Taxpayer Advocate Erin Collins, the average processing time for identity theft cases has jumped from 19 months in 2023 to 22 months in 2024. This means taxpayers who have been victims of fraud are left waiting for financial relief while the IRS takes longer than ever to resolve their cases.
So why are there such long delays?
The IRS temporarily shut down operations during the pandemic, creating a backlog. But in recent years, the agency has redirected staff to focus on answering general tax inquiries, further slowing identity theft case resolutions. While the IRS has increased the number of closed cases, processing times are still getting worse—now averaging 675 days.
What Can You Do if you have been a victim of tax identity theft?
Submit Form 14039 – If you are a victim, you must file an Identity Theft Affidavit before the IRS will begin working on your case.
Get an Identity Protection PIN – This helps prevent future tax fraud and can be requested even while a case is still open.
Contact the IRS if You Get Collection Notices – You may still receive tax bills due to system errors. If this happens, call the IRS Identity Theft Assistance line at (800) 908-4490 to request a hold on further collection activity.
Many identity theft victims rely on their refunds to cover essential expenses. Collins reports that nearly 70% of victims had an income below 250% of the federal poverty level, making these delays financially devastating.
The IRS acknowledges the problem and is working to reduce processing times, but improvements have been slow. In the meantime, victims must navigate delays, red tape, and financial uncertainty while waiting for the money they are owed.
The bottom line? If you’re a victim of tax-related identity theft, act fast, stay informed, and be prepared for a long wait. The IRS needs to do better—but until then, knowing your options is key.
