Reduce Average Time to Resolve Identity Theft Victim Assistance Cases from Nearly Two Years to Four Months

TAS is reviewing how to incorporate this initiative into an existing or new Collaborative Team, a Systemic Advocacy Project, or a potential FY 2025 Annual Report to Congress Most Serious Problem. Progress during this period was affected by the lapse in appropriations and related operational impacts, including reduced staffing capacity, reassignment of work and priorities, and a reevaluation of TAS’s approach to managing systemic advocacy objectives and associated initiatives.

In Q2, the IRS announced it is focusing on addressing the ID Theft backlogs and processing delays. The IRS has acknowledged that its current Identity Theft Victim Assistance (IDTVA) process has not been working effectively and is changing how it handles these cases to improve processing times. However, the new approach raises important concerns. As the IRS shifts identity theft cases out of the specialized IDTVA unit and assigns them to Customer Service Representatives (CSRs), it must ensure that CSRs receive adequate training and have the tools necessary to track, monitor, and manage these cases effectively.

TAS will explore ways to collaborate with the IRS to improve the experience of identity theft victims by promoting consistent case management, increasing transparency and communication, expediting case resolution, reducing processing times, and monitoring taxpayer-focused outcomes under the decentralized identity theft model.

The IRS continued implementing initiatives designed to improve the Identity Theft Victim Assistance (IDTVA) process and reduce inventory and case cycle times. Although the IRS only partially adopted the National Taxpayer Advocate’s 2024 MSP recommendation to implement a comprehensive upfront screening process for all IDTVA cases, it established a screening process that uses predefined criteria to identify cases for potential systemic closure, expedited resolution, assignment to employees based on skill set and training, or other streamlined processing. The IRS continues to review its inventory to identify additional opportunities for systemic and quick closures and to solicit employee feedback on ways to reduce the IDTVA inventory.

While these efforts represent progress toward improving identity theft case processing, concerns remain regarding the consistency and transparency of the screening process. Although the IRS indicated it would identify and prioritize cases with a potentially high taxpayer impact, there is currently no indication that this process has been implemented or incorporated into Internal Revenue Manual (IRM) procedures.

TAS will continue to collaborate with the IRS to improve the experience of identity theft victims by promoting consistent case management, increasing transparency and communication, expediting case resolution, reducing processing times, and monitoring taxpayer-focused outcomes under the evolving identity theft case management model.

TAS is reviewing how to incorporate this initiative into an existing or new Collaborative Team, a Systemic Advocacy Project, or a potential FY 2025 Annual Report to Congress Most Serious Problem. Progress during this period was affected by the lapse in appropriations and related operational impacts, including reduced staffing capacity, reassignment of work and priorities, and a reevaluation of TAS’s approach to managing systemic advocacy objectives and associated initiatives.

In Q2, the IRS announced it is focusing on addressing the ID Theft backlogs and processing delays. The IRS has acknowledged that its current Identity Theft Victim Assistance (IDTVA) process has not been working effectively and is changing how it handles these cases to improve processing times. However, the new approach raises important concerns. As the IRS shifts identity theft cases out of the specialized IDTVA unit and assigns them to Customer Service Representatives (CSRs), it must ensure that CSRs receive adequate training and have the tools necessary to track, monitor, and manage these cases effectively.

TAS will explore ways to collaborate with the IRS to improve the experience of identity theft victims by promoting consistent case management, increasing transparency and communication, expediting case resolution, reducing processing times, and monitoring taxpayer-focused outcomes under the decentralized identity theft model.

Although the IRS remains committed to reducing the identity theft inventory and improving case resolution times, significant challenges persist. Current Internal Revenue Manual guidance advises taxpayers that, while identity theft cases are generally expected to be resolved within 120 days, increased inventories have extended the average resolution time to approximately 611 days. These extended delays continue to affect taxpayers awaiting resolution of identity theft issues.

In addition, the National Taxpayer Advocate’s 2023 MSP recommendation to refrain from assigning IDTVA employees duties unrelated to identity theft casework until average case resolution times fall below 90 days has not been implemented and identity theft inventories remain elevated. During the 2026 filing season, IDTVA employees spent approximately 16 percent of their full-time equivalent (FTE) hours working identity theft cases, while approximately 82 percent of their time was devoted to telephone assistance.

TAS will continue collaborating with the IRS to identify opportunities to improve identity theft case processing, reduce cycle times, and advocate for solutions that enhance the taxpayer experience. TAS has also established an Identity Theft Processing Change Collaborative Team to evaluate ongoing challenges, coordinate advocacy efforts, and identify additional opportunities to improve the IRS’s handling of identity theft cases.