The Internal Revenue Service is taking almost two years to resolve and process tax refunds for hundreds of thousands of identity theft victims. And that’s an “unconscionable” length of time, according to a report to Congress from the National Taxpayer Advocate. 

Many of the cases under review stem from pandemic relief funds, including economic impact and childcare tax credits. Crooks tried to take advantage of the chaotic pandemic period by stealing personal information and filing false tax returns to claim the money. 

The report said there were about 500,000 tax-related identity-theft cases backlogged in the IRS system, including about 93,000 from the 2024 filing season. “The IRS must prioritize assistance for these victims and address their problems quickly,” the advocate said, highlighting that many of the victims were low-income and needed the money for daily expenses.

The New York Times noted that identity theft has plagued the IRS for years. One problem is the “laborious process” the agency has established for victims. They must file a paper return, complete an identity theft affidavit, and then wait for an investigation to be complete before they get their refunds, which is taking about 22 months.

“Victims of identity theft are already experiencing a tremendous amount of stress. The IRS’s long processing times for resolving these issues not only increases the anxiety but also deprives families of funds they may need to meet their living expenses,” the National Taxpayer Advocate wrote in June.