The Internal Revenue Service has been accepting far fewer deals from taxpayers trying to dig themselves out of tax debts , federal data shows. The IRS accepted about 5,500 "offers in compromise" during the 2025 fiscal year — a 57% decline from 2023, when the agency accepted about 12,700 offers, according to agency data . The IRS offer in compromise program allows taxpayers to settle their tax debts for less than the full amount owed. On IRS.gov, the agency describes it as a " legitimate " option for those who can't pay their debt or who would suffer financial hardship doing so. Meanwhile, the number of compromise offers submitted to the IRS by taxpayers increased 29% over that time period, to about 38,800 in fiscal year 2025.
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