IRS Intensifies Crackdown on Nonfilers to Address Growing Tax Gap
The Internal Revenue Service (IRS) is increasing its enforcement efforts against individuals who fail to file tax returns, following previous initiatives that were deemed insufficient. A report from the Treasury Inspector General for Tax Administration (TIGTA) indicates that the IRS generally issues up to two notices to selected nonfilers. Despite a Nonfiler Strategy developed in fiscal year 2018, the number of potential nonfilers grew by 5.9 million between tax years 2015 and 2022, as the IRS prioritized other areas. For tax year 2022, the projected gross tax gap—the difference between taxes owed and taxes paid voluntarily—was estimated at $696 billion, with approximately $63 billion (9%) attributed to nonfilers. TIGTA found that as of June 30, 2025, nearly 33,700 high-income nonfilers remained in a 'first notice' status, hindering further collection actions. Additionally, almost 11,000 cases involving 8,853 taxpayers were unworked in the collection queue. The IRS has since moved cases out of first notice... 
