IRS tax debt agreements have plummeted: 'I've never seen a number that low,' taxpayer advocate says

The IRS approved fewer offer-in-compromise agreements in 2024 than in previous years, despite increased applications from taxpayers seeking to settle tax debts for less than owed, according to data reviewed by tax experts. The National Taxpayer Advocate's office, which monitors IRS operations, reported a decline in approval rates. The reasons for the decrease remain unclear, with tax professionals noting shifts in IRS processing or policy application as possible factors.

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