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Billionaire Ken Griffin Gets Rare Apology from the IRS After Filing Lawsuit
Edited by: TJVNews.com
Taxpayers across the United States are experiencing increasing delays in the resolution of identity theft cases by the Internal Revenue Service (IRS). A recent report by the IRS Taxpayer Advocate Service, the agency’s internal watchdog, highlights this issue, describing the situation as “unconscionable,” as was reported on Thursday by MarketWatch. The report reveals that the average wait time for resolving such cases has extended to almost two years, exacerbating the frustrations of affected taxpayers.
The IRS Taxpayer Advocate Service report indicates that the wait time for the IRS to resolve identity theft cases has increased to approximately 22 months, up from around 19 months the previous year. According to the MarketWatch report, this delay impacts taxpayers whose personal information has been compromised by criminals filing fraudulent tax returns to claim refunds. The backlog of unresolved identity theft cases has grown from approximately 484,000 last year to around 500,000 cases as of April.
National Taxpayer Advocate Erin Collins emphasized the severity of the situation, noting that the prolonged wait times and growing backlog are creating significant hardships for affected taxpayers, as per the MarketWatch report. These delays not only prevent individuals from receiving their rightful refunds but also prolong the uncertainty and stress associated with identity theft.
Hedge-fund billionaire Ken Griffin’s experience with the IRS highlights some of the challenges associated with identity theft and data security. Griffin, the founder and CEO of Citadel, filed a lawsuit against the IRS a year and a half ago in Miami federal court, according to the information provided in The Marketwatch report. He alleged that the IRS had failed to establish adequate data-security safeguards, despite warnings from Treasury Department watchdogs.
Griffin’s lawsuit stemmed from a leak of his personal income-tax returns, which were stolen by a government contractor and led to a series of media stories about the tax strategies of high-profile individuals, as was detailed in The Marketwatch report. The case was settled recently, with the IRS issuing an apology and assuring that substantial investments have been made to strengthen the safeguarding of taxpayer information.
The IRS’s response to Griffin’s lawsuit contrasts sharply with the experiences of everyday taxpayers, who face even longer waits for resolution. The report indicated that while Griffin received an apology and assurance of improved data security, the average taxpayer dealing with identity theft must navigate a much slower and more cumbersome process.
The growing backlog and extended wait times for identity theft resolution have significant implications for taxpayers. Victims of identity theft are often left in limbo, unable to access their refunds or resolve discrepancies in their tax records. This can lead to financial hardships, especially for those relying on their tax refunds for essential expenses.
Moreover, the prolonged resolution process undermines confidence in the IRS’s ability to protect taxpayer information and efficiently handle cases of identity theft. Noted in The Marketwatch report was that the increasing delays suggest that the agency’s resources and systems may be insufficient to address the growing number of cases.
In response to high-profile breaches and increasing scrutiny, the IRS has committed to improving its data security measures. The apology issued to Ken Griffin included a statement about the agency’s substantial investments in data security to better safeguard taxpayer information, The Marketwatch report said. However, these measures must be effective and far-reaching to address the broader issue of identity theft affecting ordinary taxpayers.
Charles E. Littlejohn, a 39-year-old contractor, was sentenced to five years in an Illinois federal prison for leaking tax records of numerous high-profile individuals. Littlejohn’s actions not only compromised the privacy of these individuals but also highlighted vulnerabilities in the IRS’s data security protocols, as was reported by Marketwatch. While Littlejohn is now serving his sentence and appealing his case, the aftermath of his actions continues to reverberate, particularly for those whose personal information was exposed.
A recent report from the IRS Taxpayer Advocate Service reveals a troubling increase in wait times for resolving identity theft cases. As of now, the average wait time for taxpayers to see their cases resolved and receive their refunds is nearly two years, up from around 19 months the previous year. The backlog of unresolved cases has grown from approximately 484,000 to around 500,000.
Speaking to Marketwatch, National Taxpayer Advocate Erin Collins criticized the IRS’s handling of these cases, stating, “These taxpayers are already victims of a bad actor who stole their identity and used it to file a fraudulent return. The IRS is revictimizing taxpayers by making them wait nearly two years to resolve their case and receive their refund.”
The IRS acknowledges the issue and claims to be working on reducing the backlog, which it identifies as “one of the most significant ongoing service gaps.” However, Marketwatch reported that the persistence and growth of the backlog suggest that more comprehensive and effective measures are needed to address the problem.
Identity theft remains a significant concern beyond tax-related issues. The Identity Theft Resource Center reported nearly 11,000 new victims seeking help last year. Although this represents a year-over-year decline, the share of people reporting multiple crimes has increased, the Marketwatch report noted. Misuse of identities in connection with the federal government, particularly tax-related identity theft, remains a critical issue.
The real-life implications of identity theft for taxpayers can be severe. For instance, one victim reported that her son’s attempt to claim her as a dependent was rejected because the IRS mistakenly believed it had already received a return from her. Another victim revealed that her accountant’s system was hacked, resulting in fraudulent tax filings for her entire family, including her 12-year-old son.
These stories illustrate the widespread and deeply personal impact of identity theft. Taxpayers are left in financial limbo, unable to access their rightful refunds or clear their records for extended periods.
