The IRS recently released its 2024 Data Book, offering a detailed look at federal tax activity. It covers everything from collections and audits to refunds and compliance enforcement. In short, it highlights how the IRS is operating post-pandemic—and what that means for taxpayers like you.

According to the IRS Newsroom summary, enforcement activity has ramped up sharply in 2024. For example, the number of tax liens, levies, and investigations has climbed across the board. As a result, individuals and businesses should take IRS letters and notices more seriously than ever before.

Key IRS Enforcement Increases in 2024

• Delinquent Return Investigations: Increased from 59,964 in 2023 to 639,143 in 2024.
• New Delinquent Accounts: Jumped from 7.7 million to 9.6 million.
• Federal Tax Liens Filed: Rose from 179,019 to 196,996.
• Levies on 3rd Parties: Up from 286,270 to 313,792.

Offers in Compromise: Approval Is Now Much Tougher

Offers in Compromise (OICs) give taxpayers the chance to settle their debt for less than they owe. However, in 2024, those chances have dropped significantly. In fact, the acceptance rate has been cut in half. Furthermore, the average accepted dollar amount is down.

• 2023: 30,163 offers submitted — 12,711 accepted (42%).
• 2024: 33,591 submitted — only 7,199 accepted (21%).
• Average Accepted Offer: Fell from $214,480 to $163,383.

If you’re thinking about an OIC, visit the IRS Offer in Compromise page to understand the criteria before applying.

Installment Agreements Are the IRS’s New Favorite Tool

Instead of focusing only on settlements, the IRS is using installment agreements to collect more unpaid taxes. As a result, millions of taxpayers are now in long-term payment plans. This allows the IRS to recover revenue more steadily over time.

• Installment Agreements Created: Rose from 2.7 million to 3.4 million.
• Amount Collected: Increased from $14.3 billion to $16.1 billion.

What This Means for You

• If you haven’t filed back taxes, the risk of enforcement is growing.
• If you owe the IRS, installment plans are now more common—and more enforceable.
• If you’re considering a settlement, prepare thoroughly. The IRS is being more selective.

Looking Ahead: The IRS in 2025

The IRS is leveraging artificial intelligence (AI) to identify cases for collection and audit. In addition, fewer staff are available to answer taxpayer questions. This means taxpayers may experience both increased scrutiny and slower response times. Therefore, planning ahead is more important than ever.

Need Help Dealing With the IRS?

Have you received a notice or owe back taxes? You don’t have to handle it alone. Contact us today for a confidential consultation and personalized tax help.

The post IRS Tax Compliance Trends 2024: What Taxpayers Need to Know first appeared on Accounting & Tax Professionals, PLC.

This move, aligned with the Corporate Transparency Act (CTA), marks a pivotal shift in the regulatory landscape for businesses across the nation.

Key Highlights of the New Rule:

Reporting Companies

• Domestic entities previously classified as reporting companies are now exempt.
• Foreign entities registered to do business in the U.S. must continue to file BOI reports.

Beneficial Owners

• U.S. persons are no longer required to provide BOI.
• Reporting companies are exempt from reporting BOI of any U.S. person.
• Only non-resident alien beneficial owners are subject to reporting.

BOI Report Deadlines

• Entities that became reporting companies before the rule’s publication have 30 days from the publication date to file.
• Entities becoming reporting companies on or after the publication date have 30 calendar days from:
  • The date of actual notice of registration, or
  • The date a public notice is made by a secretary of state or tribal office.

Updated and corrected reports must still be filed within 30 days, as previously required.

What This Means for Your Business

This regulatory relaxation is poised to reduce compliance burdens for countless domestic businesses—freeing up time and resources to focus on what truly matters: growth, operations, and profitability.

At Accounting & Tax Professionals, PLC, we stay ahead of the curve so you don’t have to. Our team is dedicated to keeping you informed and ensuring your business stays compliant with all federal and state regulations.

Whether you’re:

• Unsure if this rule change applies to you,
• Needing help with past filings, or
• Looking to optimize your business structure—

We’ve got you covered.

Let’s Talk

For personalized guidance on how this new rule may impact your business, feel free to:

Visit us:
270 W 1st St, Grimes, IA 50111

Call us:
(515) 986-5843

Or simply head to desmoinestax.com to get started.

Let’s navigate these changes together and keep your business on the path to success.

This blog post is for informational purposes only and does not constitute legal or financial advice. Please consult with a professional advisor before making any business decisions.

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