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?
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