IRS Enforcement Jumps 22%: Arizona Taxpayers Running Out of Time
PRESCOTT, AZ – The IRS collected more than $104.1 billion through enforcement actions in fiscal year 2023, according to the IRS Data Book FY2023. A figure that reflects a sharp increase in audits, liens, and levies as the agency deploys the $80 billion in funding authorized under the Inflation Reduction Act. For individuals and small business owners in Arizona who’ve been quietly hoping their tax problems might resolve themselves, that window is closing. ONeill Tax Resolution, a Prescott-based CPA firm led by Patti O’Neill, is drawing on 35 years of IRS negotiation experience to meet that pressure head-on. And urging taxpayers not to wait for a notice to arrive before they act.
Key Facts: The IRS Data Book FY2023 reported $104.1 billion collected through enforcement. Up from $85.1 billion in FY2022 IRS examination coverage of individual returns increased year-over-year for the first time since 2010, per the same IRS Data Book FY2023 The IRS assessed more than $44 billion in civil penalties in FY2023; penalty abatement programs exist but require proactive filing Practitioners consistently report that taxpayers who engage representation before a levy or lien is filed have significantly more resolution options than those who wait ONeill Tax Resolution offers resolution services across audits, offer in compromise, installment agreements, penalty abatement, IRS liens, and non-filed returns Founder Patti O’Neill holds a Master’s degree in Taxation and has represented taxpayers before the IRS for over 35 years
The data is uncomfortable, but it’s not surprising. When the IRS receives significant new funding and a mandate to close the tax gap. Estimated at roughly $688 billion annually by the U.S. Treasury. Enforcement activity follows. What changed isn’t the IRS’s intent. It’s their capacity to follow through.
That shift hits hardest for the taxpayer who filed late for two years, or the self-employed contractor whose quarterly payments fell behind during a difficult stretch, or the small business owner who got a notice last spring and set it aside. These aren’t cases of fraud or bad intent. They’re exactly the kind of situations that respond well to structured IRS negotiation. If someone steps in early enough. An offer in compromise requires full financial disclosure and specific eligibility criteria the IRS evaluates carefully. Installment agreements depend on current filing compliance. Penalty abatement under the IRS’s First Time Abatement policy is available to qualifying taxpayers. But it doesn’t file itself. Every one of these tools has a process, and that process rewards people who engage before enforcement locks in.
Patti O’Neill’s approach starts at the root. Not the notice. Not the balance due. The reason the problem exists. Whether that’s a cash flow pattern, a recordkeeping gap, or years of non-filing. Is what gets addressed first. Clients don’t just get a payment plan. They get a plan that accounts for their actual financial picture, their risk exposure, and what the IRS is likely to do next.
It’s worth being direct about what this approach doesn’t promise. There are no guaranteed outcomes in IRS negotiation. Offer in compromise acceptance rates remain low nationally. The IRS Data Book FY2023 shows roughly 13,000 offers accepted out of nearly 36,000 submitted. Not every case qualifies. What a 35-year CPA brings isn’t a guarantee; it’s the judgment to know which path fits your situation before you spend money going down the wrong one.
“The IRS isn’t coming harder because taxpayers are worse,” said Patti O’Neill, CPA and founder of ONeill Tax Resolution. “They’re coming harder because they now have the budget to act on cases they’ve been sitting on for years. If you’ve had an unresolved tax issue, even one you thought was dormant, you can’t afford to assume it’s not on their list.”
“The number I’d want every taxpayer to see is $44 billion in civil penalties assessed in a single year,” O’Neill added. “That’s not a threat. It’s a data point. Penalties compound, and the IRS adds interest on top. Every month you don’t resolve the underlying problem, the number grows. The cost of picking up the phone is fixed. The cost of waiting isn’t.”
About ONeill Tax Resolution
ONeill Tax Resolution is a Prescott, Arizona-based tax relief firm led by CPA Patti O’Neill, who brings 35+ years of IRS representation experience and a Master’s degree in Taxation to every case. The firm works with individuals and small to mid-sized businesses facing tax debt, IRS audits, wage garnishments, unfiled returns, and related enforcement issues. Free consultations are available at oneilltaxresolution.com or by calling 928-378-8490.
Media Contact
Company Name: ONeill Tax Resolution
Contact Person: Patti ONeill
Email: Send Email
City: Prescott
State: Arizona
Country: United States
Website: https://oneilltaxresolution.com/


