The IRS is still too slow in processing amended tax returns, answering taxpayer phone calls and resolving identity theft cases, according to the National Taxpayer Advocate's annual report to Congress.
Despite a boost in funding, the IRS needs to improve its processing and taxpayer correspondence issues. The backlog of unprocessed amended returns has quadrupled. Taxpayer correspondence cases have more than doubled.
The report also highlights delays in assisting identity theft victims. The agency’s Identity Theft Victim Assistance program had 294,138 individual case receipts during fiscal 2023, up from 92,631 in 2019. Resolution times have skyrocketed to 556 days, which far exceeds the agency’s 120-day goal. Read more.