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 report, while highlighting positive strides made by the agency, also underscores areas that still require substantial attention and resources.