IRS financial report shows longtime deficiency resolved

The Internal Revenue Service released its annual financial information Thursday in its fiscal year 2024 Financial Report, pointing to some of its main accomplishments and challenges.

One of the accomplishments included the resolution of a longstanding significant deficiency in information system controls after 11 years. The change comes after the IRS made substantial improvements and beefed up its information technology internal controls.

During FY 2024, the IRS collected over $5.1 trillion in tax revenue, plus more than $98 billion in enforcement revenue thanks to increased funding from the Inflation Reduction Act. The agency also distributed $553 billion in federal tax refunds and other outlays. 

The report presents the IRS’s current financial position and discusses other financial topics, including the programs, accomplishments, challenges and management’s accountability for the resources entrusted to the IRS.

“I am proud of the transformation work we have done in FY 2024, and I am committed to completing the additional work that remains on many fronts: maintaining the outstanding level of service for our main phone line and closing gaps on other lines, expanding digital options for all taxpayers, further strengthening data security, and increasing support for vulnerable populations by such actions as increasing access to the Earned Income Tax Credit and other refundable credits, as well as protecting and supporting scam victims,” said IRS commissioner Danny Werfel in his introduction to the report..

The IRS also noted that it received an unmodified (clean) opinion on its financial statements for the 25th year in a row from the Government Accountability Office. The GAO also provided an unmodified opinion on the overall effectiveness of the IRS’s internal controls over financial reporting, meaning the financial statements are presented fairly, in all material respects, in accordance with U.S. GAAP.