Audit Rates, Outcomes and More: Key Insights for Taxpayers from the IRS Data Book

The Data Book is an annual publication in which the Internal Revenue Service (IRS) highlights several aspects of its collection and enforcement efforts over the prior year. The IRS recently released its Data Book for fiscal year 2024. Here, Virginia IRS lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, shares some key insights from the 2024 Data Book.

5 Key Insights from the IRS’ 2024 Data Book

While the IRS’ 2024 Data Book contains some notable figures regarding the agency’s routine collection efforts (for example, the IRS surpassed $5 trillion in total collections for the first time last year), the most interesting data pertain to its enforcement activities. Some standout figures from the 2024 Data Book include:

1. The IRS Conducted 505,514 Audits Last Year

The IRS conducted a total of 505,514 audits during the 2024 fiscal year. This includes 393,783 correspondence audits and 111,713 field audits. However, while approximately three-quarters of the IRS’ audits last year were correspondence audits, field audits accounted for approximately three-quarters of the IRS' recommended additional tax.  

2. IRS CI Opened and Closed a Total of 5,148 Investigations Last Year

In fiscal year 2024, IRS Criminal Investigation (IRS CI) closed 2,481 investigations while opening an additional 2,667 investigations. Only about a third of these investigations focused on legal source tax crimes, with the majority focusing on illegal source and narcotics-related financial crimes.

3. Seventy-Two Percent of Closed Investigations Resulted in Referrals for Prosecution

Of the 2,481 investigations that IRS CI closed in 2024, 1,794 (72 percent) resulted in referrals for prosecution. IRS CI’s investigations led to 1,669 criminal informations and indictments, 1,571 convictions and 1,582 sentences—with 75.7 percent of these sentences including prison time.

4. Assessed $84.1 Billion in Civil Penalties

During the last fiscal year, the IRS assessed $84.1 billion in civil penalties. More than half of this amount (approximately $47 billion) was assessed to businesses accused of employment tax and business income tax violations. Approximately $20 billion was assessed for alleged individual and trust income tax violations, with the remainder assessed for alleged violations involving estate and gift taxes, nonreturn penalties, excise taxes, trust taxes and tax-exempt organizations.

5. The Offer in Compromise Acceptance Rate Dropped to Just 21 Percent

Over the past decade, the IRS has accepted roughly 40 percent of all offers in compromise submitted by individual and organizational taxpayers. However, in fiscal year 2024 this dropped to just 21 percent. The 2024 Data Book does not provide an explanation for this apparent shift in policy.

Request an Appointment with Virginia IRS Lawyer Kevin E. Thorn

Virginia IRS lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, represents individuals, corporations, partnerships and other organizations in all IRS-related matters. If you have questions or concerns about facing scrutiny from the IRS (or IRS CI) in 2025, we invite you to call 703-752-3752 or contact us online to arrange a confidential initial consultation.