IRS Identifies 73.2 Million Potential Nonfiler Cases
An August 26, 2026 report from the Treasury Inspector General for Tax Administration (TIGTA) identified 73.2 millionpotential individual nonfiler casesfor tax years 2019–2023. These are cases, not unique people or confirmed filing violations. For taxpayers with missing returns, the report is a timely reminder to check IRS records and act before notices or refund deadlines become more serious.
Why did IRS nonfiler notices rise?
TIGTA reported 3,157,055 nonfiler notices in fiscal 2025, compared with 1,679,141 in fiscal 2024. IRS nonfiler notification activity had been paused intermittently during fiscal 2020–2022 and throughout fiscal 2023, with the return delinquency process resuming in February 2024. More notices do not necessarily mean more people failed to file in 2025.
What happens after a nonfiler notice?
IRS notices such as CP59 and later reminders may ask taxpayers to file missing returns or explain why a return was not required. Ignoring notices can lead the IRS to prepare a Substitute for Return (SFR) based on available third-party information. Such an assessment may omit deductions, credits, filing status details and expenses that an accurate taxpayer-prepared return could establish.
If you receive a notice, confirm its authenticity, identify the tax year, review your filing requirement and IRS transcripts, and respond by the applicable deadline. Do not assume a notice automatically means you owe tax.
Could an unfiled return mean an unclaimed refund?
Yes. Some taxpayers had income tax withheld or made estimated payments but never filed the return needed to claim a refund. Refund claims have strict filing and payment lookback rules. The often-cited three-year deadline is a useful warning, not a universal guarantee: original due dates, valid extensions, payment timing and exceptions matter. Have the exact tax year and payment history reviewed promptly.
What if the IRS already prepared a Substitute for Return?
Review the IRS assessment and underlying records. Filing an accurate original return may help correct an SFR assessment, but the right process depends on the stage of the case. Collection and appeal deadlines may also apply.
How Urban AZ Financial can help
Urban AZ Financial assists with prior-year tax preparation, nonfiler compliance, IRS notice review, SFR issues and potential refund recovery. Our free IRS Refund Recovery & Nonfiler Action Kit explains how to organize missing tax years, understand IRS notices and prepare for professional assistance. Request the guide using the link below.
Urban AZ Financial| (623) 226-7948 |UrbanAZFinancial.com
Educational information only. Individual filing requirements, refund eligibility and deadlines vary. Urban AZ Financial is not affiliated with the IRS.











