The IRS has introduced a new way for taxpayers to prove that they are keeping up with their federal tax responsibilities. The new digitally authenticated Tax Compliance Report is available through an individual’s IRS Online Account. The report can be downloaded when someone needs to show a bank, employer, government agency, or another organization that they are meeting their federal tax obligations.
The new system is designed to make the process faster and more secure. Instead of waiting for paperwork or trying to explain their tax history, taxpayers can now get an official report directly from the IRS and share the original digital file with the organization requesting it.
What Is an IRS Tax Compliance Report?
A Tax Compliance Report is a document that gives a basic picture of whether a taxpayer has been keeping up with federal tax filing and payment requirements. The report can show whether a person has filed required tax returns and paid federal taxes on time. It does not provide all of the private information found on a tax return.
For example, the report does not show a taxpayer’s income, dependents, or filing status. Instead, it provides information that an organization may need to determine whether the taxpayer is in compliance with federal tax requirements.
The IRS says the report may be useful when applying for a loan, job, government benefit, or another service that requires proof of tax compliance. This can be especially helpful for people who need to prove their tax status but do not want to provide an entire tax return or other unnecessary financial information.
The New Report Is Available Online
One of the biggest changes is that taxpayers can now get the report online instead of relying on a paper-based process.
Individuals can sign in to their IRS Individual Online Account, go to the Records and Status section, select Tax records, and then access their Tax Compliance Report. Businesses can use their Business Tax Account to download a business tax compliance report.
The IRS says taxpayers can access the report whenever they need it. This means someone who needs the document for a loan application or another transaction does not necessarily have to request a new report through a separate process each time. The online approach can also make it easier for taxpayers to keep a copy of their records and quickly provide the document to an organization that requests it.
The IRS has been adding more digital tax information to its online accounts. In February 2025, the agency added certain information returns, including Form W-2 and Form 1095-A, to individual online accounts. The new Tax Compliance Report is another step toward giving taxpayers more access to their tax information online.
The Report Shows Your Tax Compliance Status
The report gives taxpayers a straightforward indication of their federal tax compliance. According to the IRS, a taxpayer’s report can show one of several statuses.
Compliant generally means the taxpayer has met the applicable federal tax obligations covered by the report. This means required returns have been filed and taxes have been paid without an overdue return or unpaid federal tax debt. Noncompliant means the taxpayer has an overdue tax return or unpaid federal tax debt as of the date the report was created.
There is also a compliance issue status. This can apply in situations such as a taxpayer paying a balance through an installment agreement, having a history of filing or paying late, receiving certain civil fraud penalties, or having a balance under administrative or judicial review.
The report can also provide information about filing history, federal taxes owed, late payments, and returns that were not filed or were filed late.
For example, the IRS says the report can include late federal income, employment or excise tax payments from the past four tax years. It can also show returns that were not filed or were filed late during the past six years, along with certain fraud-related information.
This information can give a taxpayer a better understanding of what the IRS currently shows about their federal tax compliance.
Digital Security Helps Verify the Report
Another important part of the new system is digital authentication. The IRS says each digitally authenticated Tax Compliance Report includes an IRS-issued digital certificate. Organizations receiving the report can use the certificate and built-in verification features to confirm that the document is authentic.
This is important because financial information and tax documents can be sensitive. A digitally authenticated document gives the organization receiving it a way to verify that it came from the IRS and has not simply been recreated or altered.
Taxpayers should also be careful about how they share the report. The IRS says people should provide the original downloaded PDF when sharing the digitally authenticated report. A screenshot, scanned copy or document created through “Print to PDF” will not be the same digitally authenticated document.
The IRS also notes that some web browsers and mobile PDF viewers may not display the authentication information correctly. If the certificate details do not appear, the IRS recommends saving the original PDF and opening it with Adobe Reader on a desktop computer.
What This Means for Taxpayers
The new report could make several common financial and administrative situations easier. Someone applying for a loan may need to demonstrate that their federal tax obligations are current. Instead of providing more tax information than necessary, the taxpayer may be able to provide the Tax Compliance Report.
The same can apply to certain government programs, employment situations, or other services that require proof of tax compliance.
The report also gives taxpayers an opportunity to review what the IRS has on record. If the report shows an unpaid balance, missing return, or another compliance issue, the taxpayer can address the problem instead of discovering it later when applying for financing or another service.
However, taxpayers should remember that IRS records may not update immediately after a return or payment is submitted. The IRS says payments can take approximately two weeks to post, while recently filed returns can take approximately four to six weeks to appear in the account.
That means taxpayers who recently filed a return or made a payment may want to allow enough time for the IRS system to update before requesting a report.
How Local Tax Can Help
Understanding your tax records can sometimes be confusing, especially when you receive an IRS notice, have an unpaid balance, missed a filing deadline, or are unsure whether your tax information is up to date.
Local Tax can help taxpayers better understand their tax situation and stay organized when dealing with their federal tax responsibilities.
Whether you are preparing for tax season, dealing with an IRS issue, trying to understand a tax notice or simply want help getting your tax documents in order, having a tax professional available can make the process easier.
The new IRS Tax Compliance Report gives taxpayers another useful online resource. But knowing what the information means—and what to do if the report shows a problem—is just as important.
If you have questions about your taxes or need help understanding your tax situation, contact Local Tax for professional tax assistance.
