- 13.1 million taxpayer delinquent accounts were in IRS collection inventory at the end of FY2025, owing $211.5 billion. The average balance per account rose 15% to about $16,100.
- New investigations into unfiled returns jumped 291%, from 639,143 to 2,501,667. This is the largest movement anywhere in the collection table.
- Offers in compromise received rose 15%, but acceptances fell 24%. The acceptance rate dropped from about 21% to 14%.
- Levies rose 8% to 339,137 and lien filings rose 9% to 214,099.
- Installment agreements in force reached 4.87 million, collecting $17.9 billion in the year.
Every June the IRS publishes its Data Book, the official record of what the agency did in the previous fiscal year. Table 4-1 covers delinquent collection activity: who owes, how many new cases entered collection, and what enforcement the IRS used. We read the FY2025 table (1 October 2024 to 30 September 2025) line by line, compared it with FY2024 and pulled out what matters for firms that market tax resolution services.
All figures below come from IRS Data Book Table 4-1. Percentages and averages are our own calculations from those figures.
The FY2025 numbers at a glance
| Measure | FY2024 | FY2025 | Change |
|---|---|---|---|
| Delinquent accounts, new in year | 9,630,933 | 7,899,744 | -18% |
| Delinquent accounts, ending inventory | 14,901,508 | 13,112,485 | -12% |
| Balance owed, ending inventory | $208.4bn | $211.5bn | +1.5% |
| Average balance per account (our calculation) | $13,986 | $16,132 | +15% |
| Unfiled-return investigations opened | 639,143 | 2,501,667 | +291% |
| Unfiled-return investigations, ending inventory | 2,050,877 | 3,234,815 | +58% |
| Tax assessed on delinquent returns | $17.8bn | $29.6bn | +66% |
| Offers in compromise received | 33,591 | 38,797 | +15% |
| Offers in compromise accepted | 7,199 | 5,464 | -24% |
| Acceptance rate (our calculation) | 21.4% | 14.1% | -7.3 pts |
| Notices of federal tax lien filed | 196,996 | 214,099 | +9% |
| Notices of levy on third parties | 313,792 | 339,137 | +8% |
| Installment agreements in force at year end | 4,642,420 | 4,870,810 | +5% |
| Collected from installment agreements | $16.1bn | $17.9bn | +11% |
1. Fewer accounts, bigger balances
The number of delinquent accounts fell 12%, mainly because the IRS closed far more accounts than usual (9.7 million closed, up 59%). The total owed still rose. That leaves a smaller pool of accounts carrying more debt each: about $16,100 on average, up from about $14,000.
What it means for firms: the average account sitting in collection is now well above the $10,000 threshold many resolution firms use as a minimum. Screening on balance still matters, but a well-built intake form should find more qualifying enquiries per hundred than it did a year ago.
2. Unfiled returns are the story of the year
A taxpayer delinquency investigation opens when someone does not respond to an IRS notice about a return they have not filed. New investigations almost quadrupled, from 639,143 to 2,501,667: roughly 6,900 a day. The ending inventory rose 58% to 3.2 million, and tax assessed on delinquent returns secured by collection rose 66% to $29.6 billion.
What it means for firms: unfiled-return work is a growing, under-marketed segment. These taxpayers are often self-employed, several years behind and more worried about what filing will reveal than about the balance itself. They respond to calm, specific messaging about getting back into compliance, not to "settle your debt" headlines. We cover the messaging in how IRS notice stages should shape your marketing.
3. The "pennies on the dollar" promise is weaker than ever
Offers in compromise received rose 15% to 38,797, but the IRS accepted 24% fewer: 5,464. The acceptance rate fell from about 21% to about 14%, and the average accepted offer fell from about $22,700 to about $18,000.
What it means for firms: any advert that implies settlement is likely is now further from reality, which is exactly the gap the FTC has acted on before (see what the FTC's tax relief cases teach legitimate firms). Honest marketing that explains the realistic options, most often an installment agreement, currently not collectible status or penalty relief, is both safer and more credible to a taxpayer who has already read the headlines.
4. Enforcement is rising again
The IRS requested 339,137 levies on third parties (about 930 a working-calendar day) and filed 214,099 lien notices, both up 8 to 9%. These are still far below pre-pandemic levels: the National Taxpayer Advocate has reported 782,735 levies and 543,604 lien notices in FY2019. The direction, though, is up.
What it means for firms: levy and garnishment enquiries are the most urgent, highest-intent cases in resolution. They reward firms that answer in minutes. Our speed to lead guide covers the intake side.
5. Installment agreements are the default outcome
4.87 million taxpayers were in installment agreements at year end, and the IRS collected $17.9 billion through them, up 11%. For most taxpayers in collection, a payment plan is the realistic resolution.
What it means for firms: marketing that is honest about this outcome, and explains why professional help still matters (the right plan, the right amount, protection from levy while it is set up), builds trust with exactly the people most likely to sign.
What we would change in a resolution firm's marketing because of this data
- Add an unfiled-returns campaign with its own landing page, form questions (years unfiled, self-employed or W-2, notices received) and follow-up.
- Remove any settlement-led headline. Lead with what the notice means and what the realistic options are.
- Prioritise levy and garnishment enquiries in routing so they reach a person first.
- Revisit your balance threshold. With higher average balances, you may be able to raise it without losing volume.
- Track cost per retained case by situation (levy, lien, unfiled, payroll), not one blended cost per lead.
Method and limitations
All counts come from IRS Data Book FY2025 Table 4-1, which reports FY2024 and FY2025 side by side. Averages, rates and percentage changes are our calculations. Delinquent accounts are counted by account in collection status, not by unique taxpayer, and cover all return types (individual and business). Levy figures count notices of levy requested on third parties by the Automated Collection System and Field Collection. Readers are welcome to cite this analysis with a link to this page.
Questions
How many taxpayers owe the IRS in 2026?
The IRS FY2025 Data Book shows 13.1 million taxpayer delinquent accounts in collection inventory at 30 September 2025, owing $211.5 billion in assessed tax, penalties and interest. That counts accounts in collection status, not every taxpayer with a balance.
What is the IRS offer in compromise acceptance rate?
In FY2025 the IRS received 38,797 offers in compromise and accepted 5,464, an acceptance rate of about 14.1%, down from about 21.4% in FY2024.
How many IRS levies and liens were issued in FY2025?
The IRS requested 339,137 notices of levy on third parties and filed 214,099 notices of federal tax lien in FY2025, increases of about 8% and 9% on FY2024.
Want these numbers for your own firm? Book a strategy call and we will walk through your lead sources, intake and cost per retained case.