# IRS Seeks to Accelerate Identity Theft Case Processing

The Internal Revenue Service (IRS) is facing a substantial backlog in processing identity theft tax refund claims, with resolution times significantly exceeding the agency's 120-day target. The Treasury Inspector General for Tax Administration (TIGTA) has recommended that the IRS expedite case assignments and consider integrating artificial intelligence (AI) technologies to enhance processing efficiency. This backlog not only delays refunds to taxpayers but also increases government interest payments, highlighting an urgent need for improved case management solutions.

- The IRS's backlog presents procurement opportunities for contractors specializing in identity theft detection, case management systems, and AI-driven automation tools.
- Agencies involved in tax administration may prioritize vendors capable of delivering scalable, secure, and compliant AI solutions to reduce processing times.
- Procurement professionals should anticipate potential solicitations focused on technology modernization and efficiency improvements within IRS operations.
- Businesses offering advanced analytics and AI integration services can position themselves to support the IRS's efforts to mitigate identity theft impacts and streamline refund processing.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Artificial Intelligence, Cybersecurity
**Published:** September 24, 2026

### Government Entities
- Internal Revenue Service (IRS)
- Treasury Inspector General for Tax Administration (TIGTA)

### Sources
- [IRS mired in backlog of identity theft cases, report finds | FedScoop](https://fedscoop.com/irs-identity-theft-cases-backlog-report) - FedScoop