Although the number of Internal Revenue Service (IRS) offers in compromise (OIC) received increased by 9.98% in 2021, the number of offers approved only increased by 6.06%. Therefore, the IRS OIC acceptance rate for 2021 fell by 1.1% to 30.7% in comparison to 2020. 30.7% represents a differential of 12.1% from the OIC all-time acceptance rate high of 42.8% back in 2016. Moreover, the average amount per offer in compromise accepted increased by 3,520.24 or 31.83%.

The IRS released data for 2019 with a few interesting numbers related to enforcement actions and audits. We will review and compare the number of tax liens, tax levies, and audits in 2019 as compared to previous years.

Established in 1998 to provide independent oversight to the Internal Revenue Service (IRS), the Treasury Inspector General for Tax Administration (TIGTA) regularly audits IRS processes. In September 2019, the group completed an audit of various aspects of the IRS appeals hearing process. The TIGTA found several mistakes that are worrisome for taxpayers.