If you’ve got unfiled tax returns, you might want to catch up sooner rather than later.
A government watchdog — the Treasury Inspector General for Tax Administration — recently released a report urging the IRS to do more about those who don’t submit their tax returns.
The IRS didn’t specifically say it would increase its pressure on those who don’t file. But after the report’s release, the agency did say it’s using “analytics, automation, and artificial intelligence to identify potential noncompliance earlier and expand the use of reminder notices and other early outreach.”
Taxes owed vs paid
During the 2022 tax year, the IRS estimates that there was a $696 billion difference between the amount of taxes owed and the amount paid on time. Those who didn’t file their returns contributed to about $63 billion of that amount.
Between 2015 and 2022, the number of people who likely owed a return but didn’t file jumped by 5.9 million as the IRS focused its attention elsewhere.
IRS targets high earners
In 2024, the IRS started going after wealthy non-filers. The agency said it had flagged more than 125,000 instances of high earners failing to file since 2017.
The problem, according to TIGTA, is follow-through. As of mid-2025, a separate batch of high-priority non-filer cases had stalled. About 33,700 taxpayers were still sitting in “first-notice status,” meaning the IRS had sent an early notice but hadn’t moved the case forward. (The IRS usually sends up to two notices asking non-filers to file before the agency takes further action.)
The watchdog group estimated that if the IRS pushed those cases forward — along with roughly 11,000 more the agency hadn’t worked at all — it could secure about $412 million in additional taxes owed.
TIGTA’s report also found instances where taxpayers who had already filed their returns were still included in the initiative. In other words, the system isn’t perfect, which is one more reason to file correctly and on time so you don’t get swept up by mistake.
What the IRS has done
Although the TIGTA report was critical of the IRS’s efforts, the agency has seen some success. In September 2024, the IRS and Treasury announced that the high-income non-filer initiative brought in $172 million from about 21,000 wealthy taxpayers who filed after the IRS contacted them.
What this means for you
When the IRS relaunched its non-filer effort, it focused on taxpayers making more than $400,000 who hadn’t filed since 2017. And under a 2022 Treasury directive, the IRS isn’t supposed to increase audit rates on households and small businesses earning below $400,000.
That said, filing still matters at every income level. The surest way to stay off the IRS’s radar is simple: File, file on time, and file accurately.
If you’re behind, catching up now is almost always cheaper than waiting for a notice. (In case you’re curious, that first notice is usually a CP59, which tells you the IRS has no record of your return for a given year.)
If you need help filing past returns, let us know.