More than half a million Americans are waiting for the IRS to resolve their tax identity theft cases, with the agency taking roughly 20 months to close them, according to a new report from the National Taxpayer Advocate. The backlog has grown from approximately 484,000 cases in 2023 to over 500,000 now, while resolution times have stretched from 19 to 20 months. National Taxpayer Advocate Erin Collins called the delays unconscionable, warning that for low- and middle-income taxpayers, waiting nearly two years for a refund can mean falling behind on basic living expenses. The report notes that IRS staffing has fallen 27% to 74,000 employees at the start of the 2026 tax filing season, worsening delays for cases requiring manual review. The average tax refund this season is $3,462, up 11% from the prior year, and a LendingTree survey found 46% of filers are depending on their refund.