Can the IRS keep offsetting my refund while an identity-theft case is pending?

They can continue showing offset activity until the disputed liability is actually corrected, which is why procedure matters so much here.

An identity-theft case does not instantly erase the bad account history. The taxpayer still needs the record corrected.

Fresh example:

• Maya Lennox discovers wages were reported under her Social Security number for a year she had no employment income.
• The IRS account now shows tax due plus added charges.
• Each filing season her refund is absorbed by that balance.

The right analysis is:

1. confirm the identity-theft case was received
2. track all collection and offset notices
3. gather proof that the wages are not hers
4. consider advocate escalation if the case is aging without movement

The trap answer is ignore the notices because the case is pending. That is weak procedure. Pending status does not eliminate the need to respond and document the dispute.