A Treasury Inspector General for Tax Administration audit found thousands of high-priority nonfiler cases remained in first-notice status because the IRS delayed final notices over resource concerns. The agency says it has since moved the accounts forward.
About 38,824 high-priority nonfiler cases remained in first-notice status as of June 30, 2025, representing roughly $15.7 billion in potential tax assessments.
TIGTA found weaknesses in agencywide oversight of nonfiler programs, including lack of separate resource tracking, stalled Nonfiler Executive Steering Committee, and performance gaps.
TIGTA said that the nearly 39,000 stalled cases represented approximately $15.7 billion in potential tax assessments. The watchdog estimated that earlier action on the cases could have resulted in returns or assessments in 10,482 cases, involving about $321.3 million in additional tax. That additional tax amount, according to a TIGTA email response, still can be collected by the IRS.
According to the report, many of those taxpayers were included in the initiative because their returns had not yet been processed and posted to their accounts. The report examined a high-income nonfiler initiative the IRS launched in February 2024. The initiative monitored 135,270 cases, including taxpayers with income of $400,000 or more, federal employees, IRS employees, and certain taxpayers identified through a Senate Finance Committee request.
TIGTA estimated that prioritizing the queued cases could result in returns or assessments in 2,962 cases involving 2,399 taxpayers and approximately $90.8 million in additional tax due. TIGTA found that the IRS issued first notices in 4,918 cases involving 4,748 taxpayers who had already filed returns. The report said 1,433 of those returns took more than a year to post.
The IRS will be cracking down further on people who fail to file tax returns after earlier efforts didn't do enough, according to a new report.
A TIGTA report found that IRS delays in resolving identity theft cases cost the government $124.2 million in refund interest from fiscal years 2023 through 2025. The findings echo warnings from National Taxpayer Advocate Erin Collins, who has called the wait times “unconscionable.”
Most Internal Revenue Service employees avoided directly contacting taxpayers who were represented by tax professionals, but there were some misunderstandings.
Taxpayers waited about 20 months for the IRS to process their identity theft cases in recent years, frustrating and burdening taxpayers expecting tax refunds.
Tax Compliance Tracker – October, 2026 1. Compliance requirement under Income Tax act, 1961 Sl. Compliance Particulars Due Dates 1 Due date for deposit of tax deducted/collected for the month of September 2026. However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central
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