Mounting Delays Undermine Public Trust in IRS Refund Process

Get ready for more unhappy clients and tougher conversations.

Identity Theft Victim Assistance (IDTVA) Workload
Pending IDTVA Cases 387,000
Average Resolution Time 602 days
Percent of Affected Taxpayers Below 250% of Federal Poverty Line 69%
Pending cases and processing delays stress hundreds of thousands of taxpayers financially.

By CPA Trendlines Research

The Internal Revenue Service is taking an average of 20 months to resolve identity theft cases, leaving hundreds of thousands of taxpayers in financial limbo, disproportionately harming low-income households and straining the resources of CPA firms and tax professionals.

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For tax professionals, the stakes are high and the immediate need is clear: Set client expectations, document communication with the IRS, and explore hardship cases that might qualify for expedited handling. At the policy level, the delays are fueling calls for funding, automation, and clearer transparency metrics from the IRS.

“Victims entitled to refunds are waiting nearly two years to receive them,” Collins says. “These delays disproportionately affect vulnerable populations dependent on their refunds to meet basic living expenses.”

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Brace Yourself: IRS 25% Staff Cuts Mean Big Trouble for Tax Pros and Clients

A hobbled agency could have trouble meeting revenue goals and basic taxpayer services.

Taxpayer Advocate Collins: “Significant challenges.”

By CPA Trendlines Research

The Internal Revenue Service is reeling from massive Trump Administration staffing cuts, which have left the agency knee-capped with nearly 26,500 fewer employees, raising red flags for tax professionals about service quality, enforcement consistency and case resolution delays.

MORE Tax | What to Watch in the One Big Beautiful Bill | Quick Tax TipIRS’s Big Annual Report: Already Out of Date as Agency Grapples with Chaos and CutsBusy Season Barometer Stats: Who’s Responding and How They’re DoingAccountants Reporting a Pretty Good YearTax Season Faceplant: Accountants Overrun by Late Chaos

The IRS has lost 25.9 percent of its workforce since Jan. 25, 2025, with headcount dropping from 102,113 to 75,702 as of June 4, 2025. Most of the cuts come from voluntary separation incentives rather than layoffs, according to the National Taxpayer Advocate 2026 Objectives Report to Congress.

Yet, the result is the same: fewer agents, auditors, and call center staff, just as tax complexity and demand for support are expected to increase.

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Tax Rep Training Found in New Partnership

New partnership between Becker and the Tax Rep Network.

By CPA Trendlines

It’s been widely publicized that the IRS may be finally catching up on its “balance due” and other notices to taxpayers and, as such, so goes the need for tax representation work. If this is indeed your path as a CPA or tax pro, then consider this new partnership between accounting exam prep and training service Becker and the Tax Rep Network.

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The IRS Tidal Wave Is Here

man silhouetted against open doorway in tidal wave

What you need to know now.

By Eric Green

For over a year now, we’ve been saying that the IRS was properly funded and warned it would unleash a tidal wave of work. We also warned you that we would be dealing with all sorts of untrained employees. The bad news, at least for clients, is that day has come.

MORE: S Corp Clients Beware | Four Ways to Handle Federal Tax Liens | The IRS Is Coming! Get Your Clients into Compliance | Tax Chat: Eric Green Reveals The Tax Rep Guide to Tax Season | What I Wish Clients Knew about Tax Liens | Tax: Explaining the Bad News about Canceled Debt to Clients | Offers in Compromise Aren’t for Everyone
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The good news for tax pros is that with this wave of enforcement spells opportunities for representation work. What you do still have to navigate is the impact of untrained employees, who are creating their own set of challenges.
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Four Ways to Handle Federal Tax Liens

There’s more than one route to satisfying the IRS Collection Division.

By Eric L. Green

IRS tax liens can have a profound impact on an individual’s situation, affecting their ability to get loans, sell property or engage in business activities. As such, it is crucial for individuals to understand how IRS tax liens work and the options available for getting rid of them.

MORE: The IRS Is Coming! Get Your Clients into Compliance | Tax Chat: Eric Green Reveals The Tax Rep Guide to Tax Season
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In this article we discuss approaches and factors to consider when dealing with IRS tax liens, offering insights and advice to help taxpayers navigate this process.

Understanding IRS Tax Liens

Before discussing ways to remove tax liens, it is important to get a basic understanding of what they entail. A tax lien represents a right against a taxpayer’s assets, and is used by the IRS to secure its interest in the taxpayer’s assets – both those owned at the time and those later acquired.
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