The IRS has made significant improvements in taxpayer services thanks to the Democrats' Inflation Reduction Act, as reported by an independent watchdog. Despite these advancements, the agency is still facing challenges in processing claims related to a pandemic-era tax credit program and resolving identity theft cases.
The report highlighted that delays persist in addressing claims from taxpayers whose identities were stolen by fraudsters, with the average resolution time increasing from 19 to 22 months in 2024. Additionally, there have been prolonged delays in resolving Employee Retention Credit claims, which were intended to assist businesses in retaining employees during pandemic shutdowns but were exploited by scammers.
