IRS Reports More Than $5 Trillion in 2024 Tax Revenues

The agency processed 267 million tax returns and forms and expanded enforcement during this period.
IRS Reports More Than $5 Trillion in 2024 Tax Revenues
Internal Revenue Service (IRS) building in Washington, on Oct. 16, 2023. Madalina Vasiliu/The Epoch Times
Naveen Athrappully
Updated:
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The Internal Revenue Service (IRS) received around $400 billion more in taxes in its most recent fiscal year than the prior one, with both individual and corporate collections rising, according to the agency’s latest financial report.

The IRS collected around $5.1 trillion in tax revenues for fiscal year 2024—which ran from Oct. 1, 2023, to Sept. 30, 2024—according to the Nov. 7 report from the agency. This is more than 8.5 percent higher than the roughly $4.7 trillion the IRS received in 2023. The biggest chunk of revenues in 2024 came from individual income taxes and tax withholdings, which accounted for $4.4 trillion.

This was followed by corporate income, excise, estate and gift, federal unemployment, and railroad retirement taxes. Receipts from individual and corporate income were higher this year.

The IRS processed 267 million tax returns and forms with the average individual refund issued by the department being $3,143. The agency collected $98.7 billion through its enforcement efforts.

A majority of the collected amount was transferred to the General Fund of the Government, with the agency retaining $203 million and transferring $46 million to the Department of the Interior.

Meanwhile, a report by the Government Accountability Office (GAO), published the same day the IRS released its fiscal 2024 financial report, found some issues with the tax agency’s reporting.

The GAO analyzed the IRS’s financial statements for fiscal years 2023 and 2024. While these statements “are fairly presented in all material respects,” the GAO said that “internal controls could be improved.”

There were some problems with IRS systems used to account for federal taxes receivable and other unpaid assessment balances, the report noted. In addition, other control deficiencies led to errors in taxpayer accounts. These are issues that previously existed and continued during fiscal year 2024, the GAO noted.

“These control deficiencies affect IRS’s ability to produce reliable financial statements without using significant compensating procedures,” it said.

The deficiencies “represent a continuing significant deficiency in internal control over financial reporting. Continued management attention is essential to fully addressing this significant deficiency.”

The Epoch Times reached out to the tax agency for comment.

Expanded Enforcement

The IRS’s 2024 financial report also revealed the enforcement measures it has implemented during this period.

The tax agency is “moving more swiftly to improve tax compliance in areas where the IRS did not have adequate resources,” it said. “However, small businesses and households earning $400,000 or less will not see audit rates increase relative to historical levels.”

Back in 2022, Treasury Secretary Janet Yellen had asked the IRS not to use resources gained from the Inflation Reduction Act (IRA) to target households and small businesses making less than $400,000 a year.
Lawmakers have earlier questioned the agency’s ability to follow this rule. Last November, Sen. Mike Crapo (R-Idaho) claimed that the $400,000 threshold refers to total positive income, a term which includes all incomes earned during a year without accounting for losses.

“This could impact many taxpayers who in reality make far less than $400,000. How would this affect an Idaho small-business owner whose gross sales generate more than $400,000, but after expenses and losses, takes home much less?” he asked.

An August 2024 report from the Treasury Inspector General for Tax Administration (TIGTA) also questioned the applicability of the $400,000 limit.

The report noted that the IRS was considering subjecting married couples jointly who have a total positive income of $400,000 to the same audit risk as an individual earning this income. The TIGTA called it a “marriage penalty.”

Regarding enforcement efforts, the agency said it was using IRS funding to target high-income non-filers.

“In fiscal year 2024, the IRS ramped up efforts to pursue high-income and high-wealth individuals who have either not filed their taxes or failed to pay recognized tax debt, concentrating on taxpayers with more than $1 million in income and more than $250,000 in recognized tax debt,” the agency said.

“The IRS opened examinations on 76 of the largest partnerships in the U.S., representing a cross-section of industries including hedge funds, real estate investment partnerships, publicly traded partnerships, large law firms, and other industries.”

The IRS sent more than 25,000 non-compliance letters to taxpayers in fiscal 2024 suspected of tax evasion and who earned more than $1 million in income. In addition, more than 100,000 letters were sent to taxpayers with incomes between $400,000 and $1 million.

Meanwhile, lawmakers are targeting the IRS for its customer service. A group of bipartisan senators introduced a bill last month aimed at improving this aspect of the agency.

The Improving IRS Customer Service Act mandates the establishment of a dashboard informing taxpayers about backlogs facing the department and expected wait times.

The IRS will be required to expand electronic access to information and refunds. The agency will also have to inform individuals facing economic hardship about collection alternatives.

Naveen Athrappully
Naveen Athrappully
Author
Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.