Collections, activities, penalties and appeals

 

This section of the IRS Data Book presents information on collections and penalties resulting from individuals’ or enti­ties’ failures to comply with the tax code. Failure to comply with filing, reporting, and payment requirements may result in civil penalties or, in some cases, criminal investigation. IRS’s Collection function collects federal taxes that have been reported or assessed but not paid and secures tax returns that have not been filed. The IRS may assess pen­alties on cases for many reasons, including inaccuracies, failure to file, and failure to pay, but may also allow for a reduction of the amount of some penalties in certain cases.

Additionally, this section presents data on the IRS Independent Office of Appeals workload. The mission of Appeals is to resolve tax controversies without litigation, on a basis that is fair and impartial to both the taxpayer and the federal government. The Appeals Office consid­ers cases that involve examination, collection, and pen­alty issues. Taxpayers who disagree with IRS findings in their cases may request an Appeals hearing. The local Appeals Office is separate from and independent of the IRS office that proposed the tax adjustment, collection action, or penalty.

Graphic shows the amount of civil penalties assessed by the IRS in fiscal year 2025, a total of more than $1.2 trillion. Of this, almost $1.2 trillion was assessed on employment returns, $33.1 billion was assessed on individual and estate and trust income tax returns, and $255.5 billion was assessed on businesses.

View chart details XLSX. For additional graphs from this section, download the PDF of this year’s Data Book PDF.

Highlights of the data

  • In Fiscal Year (FY) 2025, the IRS collected $117.5 billion in unpaid assessments on returns filed with additional tax due, netting $73.1 billion after credit transfers (Table 4-1 XLSX ).
  • The IRS assessed $29.6 billion in additional taxes for returns not filed timely and collected almost $3.5 billion with delinquent returns (Table 4-1 XLSX ).
  • In FY 2025, taxpayers proposed 38,797 offers in compromise to settle existing tax liabilities for less than the full amount owed. IRS accepted 5,464 offers, amounting to $98.1 million, during the year (Table 4-1 XLSX ). 

Index of Data Book tables

Collection activities, penalties, and appeals: Tables 4-1 – 4-4

Table 4-1: Delinquent collection activities, fiscal years 2024 and 2025 XLSX 
Table 4-2: Civil penalties assessed and abated, by type of tax and type of penalty, fiscal year 2025 XLSX 
Table 4-3: Appeals workload, by type of case, fiscal year 2025 XLSX 
Table 4-4: Appeals: Alternative dispute resolution, mediation programs by initiative type, fiscal years 2024 and 2025 XLSX 

Data for all years

Other Data Book sections

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Page Last Reviewed or Updated: 05-Jun-2026