IRS Delinquent Collection Activities for 2011
This is a review of IRS collection actions for 2011. This includes Offers in Compromise accepted, Filed Federal tax lien, notices of levy served on third parties, IRS seizures, and IRS penalty abated/removed. If you have questions about this review, please reference: bp105.
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Interesting stats for 2011 and somewhat contradictory. IRS acceptance of Offers in Compromise have jumped dramatically. Is it due to IRS leniency, or because the main offenders of frivolous offer in compromise filers are out of business? Ronni Lynn Deutch is out of business, J.K. Harris is out of business, and TaxMasters is in bankruptcy.
Source: IRS Back Tax Collections, Offer in Compromise, Federal Tax Liens, IRS Levy, IRS Seizures
IRS Offer in Compromise Accepted and Rejected
There has been a large jump in the percentage of accepted Offers in Compromise with no stated equally dramatic change in policy. By comparison in 2010, only 24% of all offers were accepted.
Offers in compromise (thousands) [5]: |
2011
|
% Accepted
|
Number of offers received |
59
|
|
Number of offers accepted |
20
|
|
Amount of offers accepted |
154,092
|
34%
|
IRS Tax Liens, Levy, & IRS Seizure Stats
IRS Seizures are the real concern here. IRS tax liens and IRS levies stayed relatively level.
Enforcement activity: |
2010
|
2011
|
% Change
|
Number of notices of Federal tax liens filed [6] |
1,096,376
|
1,042,230
|
-5%
|
Number of notices of levy served on third parties |
3,606,818
|
3,748,884
|
+4%
|
Number of seizures |
605
|
776
|
+22%
|
IRS Civil Penalty Abatement Statistics, Yes, it does really happen
Everyone always asks. Can you really Abate IRS Penalty? Yes. The IRS admits it officially. Roughly one-third of all penalty is abated. It is important to fight IRS penalty. 46% of all civil penalty is abated for employment taxes. If your Revenue Officer isn’t working with you on IRS penalty, they should be.
Table 17. Civil Penalties Assessed and Abated, by Type of Tax and Type of Penalty,
Fiscal Year 2011 [1] |
|
[Money amounts are in thousands of dollars] |
|
Type of tax and type of penalty |
Civil penalties assessed |
Civil penalties abated [2] |
|
Number |
Amount |
Number |
Amount |
|
(1) |
(2) |
(3) |
(4) |
|
Civil penalties, total |
38,646,963 |
30,921,558 |
4,871,988 |
11,008,638 |
36%
|
Individual income tax: |
|
|
|
|
|
Civil penalties, total [3] |
28,749,882 |
15,580,904 |
3,067,370 |
5,241,771 |
34%
|
Accuracy [4] |
500,472 |
1,112,671 |
51,461 |
252,004 |
|
Bad check |
296,559 |
24,795 |
11,959 |
5,088 |
|
Delinquency |
3,736,987 |
6,344,147 |
790,190 |
2,718,565 |
|
Estimated tax |
7,366,907 |
1,569,824 |
263,442 |
450,376 |
|
Failure to pay |
16,841,952 |
6,291,624 |
1,944,535 |
1,697,104 |
|
Fraud |
2,391 |
186,116 |
167 |
107,263 |
|
Other [5] |
4,614 |
51,727 |
5,616 |
11,371 |
|
Business income tax: |
|
|
|
|
|
Civil penalties, total |
1,080,027 |
1,496,418 |
250,325 |
611,457 |
41%
|
Accuracy [4, 6] |
4,204 |
191,564 |
d |
d |
|
Bad check [6] |
4,679 |
14,551 |
210 |
250 |
|
Delinquency [6] |
594,265 |
651,050 |
170,685 |
295,428 |
|
Estimated tax [6] |
198,697 |
203,923 |
8,465 |
99,486 |
|
Failure to pay [6] |
259,245 |
304,238 |
64,793 |
149,844 |
|
Fraud [6] |
192 |
9,383 |
d |
d |
|
S corporation/partnership information [7] |
18,662 |
117,262 |
1,758 |
10,547 |
|
Other [6] |
83 |
4,447 |
4,318 |
38,618 |
|
Employment taxes: |
|
|
|
|
|
Civil penalties, total [8] |
7,745,830 |
5,298,944 |
1,364,041 |
2,424,513 |
46%
|
Accuracy [4] |
2,590 |
13,638 |
238 |
962 |
|
Bad check |
192,135 |
25,154 |
3,610 |
2,632 |
|
Delinquency |
1,669,240 |
1,340,470 |
291,429 |
655,989 |
|
Estimated tax |
3,595 |
14,182 |
648 |
10,878 |
|
Failure to pay |
4,162,673 |
1,100,324 |
673,166 |
383,485 |
|
Federal tax deposits |
1,715,095 |
2,795,325 |
394,938 |
1,370,523 |
|
Fraud |
256 |
3,404 |
12 |
44 |
Other |
246 |
6,447 |
0 |
0 |
|
Not happy with IRS back tax results?
If you feel like you are on the wrong side of all these statistics, it is probably worth seeking a second opinion. If you would like irs back tax help to be your first or second opinion, I can be reached at irsbacktaxhelp@gmail.com. I do not pressure people in an already stressful situation.
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