During the fiscal year 2018, 59,000 taxpayers submitted offers in compromise. Again, an Offer in Compromise provides struggling taxpayers the ability to settle their existing tax debt for a lower amount than what they owe. Of those offers, the IRS accepted 24,000. This represents a 40.68% acceptance rate.
The offers accepted resulted in the collection of $261.3 million throughout the fiscal year. In 2017, 62,000 offers in compromise were submitted to the IRS, and 25,000 were accepted. This represents a slightly lower acceptance rate of 40.32%.
IRS Offer In Compromise Acceptance 2018 vs. 2017
Fiscal Year Offers Received Offers Accepted Acceptance Rate
2017 62,000 25,000 40.32%
2018 59,000 24,000 40.68%
Although the IRS did report some major differences between the enforcement and activity rates in the fiscal year 2017 versus 2018, other areas remained fairly consistent. The number of audits increased only slightly, while the offer in compromise acceptance rate differed only minimally between the two years. It will be interesting to see how the numbers differ in the next fiscal year.
Sources: IRS Data Book 2017 & 2018
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