Let’s look back on some of the statistics compiled by the IRS for Fiscal Year 2011 and try to determine what will be reported for FY 2012. Will we see any new tax relief trends? My source is the Statistics of Income tax stats found in the “IRS Data Book.”
- Number of new deliquent tax accounts in FY 2011: 8,011,000 (17,000 more than 2010)
- Number of untimely filed returns by end of FY 2011: 3,862,000 (162,000 more than 2010)
- Number of Offers in Compromise filed: 59,000 (2,000 more than 2010)
- Number of Offers in Compromise accepted: 20,000 (6,000 more than 2010)
- Number of Federal Tax Liens filed: 1,042,230 (54,146 less than 2010)
- Number of levy notices served on 3rd parties: 3,748,884 (142,066 more than 2010)
- Number of seizures: 776 (171 more than 2010)
The only stat that appears to be on a downward trend is the filing of Federal Tax Liens. This is good news for taxpayers. For several years now advocacy groups have been questioning the efficacy of tax liens as a collections tool; maybe the IRS is finally listening.
More and more taxpayers continue to file and pay late, and incur tax debt. And the IRS tries to keep pace by increasing active collection activities.
What about the Offer in Compromise acceptance rate? You see a lot of percentages thrown around by tax attorneys and tax resolution firms. But according to IRS’ figures, they accepted 25% in 2010 and 34% in 2011. This is probably the most encouraging data of all. Let’s hope this trend continues and the IRS accepts event more offers in compromise when the statistics are available for FY 2012.