Improving Digital Identity Act of 2023 This bill establishes a temporary task force to recommend secure methods and coordinate efforts for digital identity verification (a process for verifying the identity of an individual who accesses a service online or electronically). Specifically, the bill establishes a task force within the Executive Office of the President to coordinate a government-wide effort for promoting digital identity credentials (e.g., electronic driver's licenses and birth certificates) for use in the public and private sectors. This includes identifying the governmental agencies that issue identity credentials or hold information used to identify an individual; recommending a strategy for digital identity verification that addresses issues such as privacy, equity, and interoperability; and identifying funding or resources needed to support governmental agencies with adopting digital identity verification. Members of the task force include representatives from federal agencies; representatives from state, tribal, territorial, and local governments; and nongovernmental experts. The task force must periodically report its findings and terminates three years after the enactment of the bill. Further, the Office of Management and Budget (OMB) must issue guidance for federal agencies to implement task force recommendations, and federal agencies must annually report on their implementation activities. Additionally, the OMB must report on the implementation and effectiveness of federal digital identity capabilities in coordination with the Cybersecurity and Infrastructure Security Agency. The Government Accountability Office must report on the potential savings from averting benefit fraud and identity theft by increasing adoption of digital identity verification.