An independent watchdog finds the IRS has improved its overall taxpayer service through Democrats' Inflation Reduction Act but still faces delays processing claims from a coronavirus pandemic-era tax credit program and is slow to resolve certain identity theft cases.

The annual report by the agency’s national taxpayer advocate also flagged ongoing problems with the troubled Employee Retention Credit.

The Internal Revenue Service (IRS) has made significant improvements in taxpayer services, largely due to funding from the Inflation Reduction Act, yet continues to struggle with a backlog of claims related to a coronavirus pandemic-era tax credit program and delays in resolving certain identity theft cases,