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Erin Collins, nationwide taxpayer advocate on the Taxpayer Advocate Service, speaks at a Senate Appropriations subcommittee listening to in Washington, D.C., on Might 19, 2021.
Bloomberg | Bloomberg | Getty Pictures
There is a pileup of tax id theft circumstances on the IRS — however the company is engaged on a “vary of enhancements” to hurry up service.
As of April, the company had roughly 500,000 unresolved id theft circumstances, up from 484,000 circumstances in September, Nationwide Taxpayer Advocate Erin Collins reported final week. Identification theft victims have waited greater than 22 months for decision, plus a number of weeks for refunds.
Tax id theft occurs when criminals use stolen private data to file a fraudulent tax return to assert a refund. If a felony information earlier than the taxpayer, the IRS rejects and freezes the second return for investigation.
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The wait has solely grown longer over the previous a number of months. Collins reported in January that id theft victims had been ready 19 months for decision and refunds, which stemmed from Covid-19 shutdowns and pandemic aid.
These delays have induced “important hardship” for taxpayers, particularly decrease earners, she wrote.
Almost 70% of the circumstances concerned taxpayers with an adjusted gross revenue at or under 250% of the federal poverty degree.
“It has been 4 years from the onset of the pandemic, and the IRS’ delays in serving to victims are unconscionable,” Collins wrote final week.
Whereas taxpayer service has improved by the 2024 season, the backlog of id theft circumstances stays “some of the important ongoing service gaps,” the IRS mentioned in an announcement.
IRS plans for ‘sooner service’
The IRS mentioned it is engaged on enhancements to offer “sooner service” to id theft victims, together with extra sources to work circumstances.
The company additionally plans to assessment its processes and interact with stakeholders to “determine and forestall evolving tax-related id theft threats.”
“Identification theft circumstances are advanced and take time to resolve,” however elevated funding has higher positioned the company to deal with these circumstances extra rapidly, the IRS mentioned.
The company on Tuesday warned tax professionals to guard themselves from id theft criminals who may very well be concentrating on them and their shoppers.
“Safety threats in opposition to tax professionals and their delicate taxpayer data proceed to evolve, and it’s vital to remain on prime of the newest developments to guard their enterprise and their shoppers,” IRS Commissioner Danny Werfel mentioned in an announcement on Tuesday.
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