How to Check Your Tax Compliance Status

What tax compliance means

"Compliance" means you've met the procedural requirements the IRS has placed on you. But this term is used loosely, and people often confuse it with being "current" or having a matter "resolved."

Compliance means:

All required returns are filed — No years are missing from your account
All filing deadlines have passed — You're not in violation of statutes
You've responded to IRS requests — If the IRS asked for documents or information, you provided them
You've complied with procedural deadlines — Appeals filed within time, protests submitted, etc.

Compliance does NOT necessarily mean:

You've paid all taxes owed
Your account balance is $0
The IRS isn't collecting from you
You don't have collection activity

Compliant vs. current vs. resolved

These three terms sound similar but mean different things:

Compliant

You've met all procedural requirements the IRS has placed on you. All required returns are filed. Deadlines have passed or been met. You've responded to notices.

Current

You're current on filing and payment obligations going forward. This typically means your most recent tax returns are filed and you're up-to-date on estimated quarterly payments (if required). "Current" doesn't address past debt—just forward obligations.

Resolved

Your account has been settled or disposed. Either you paid the debt, reached a settlement (OIC, installment agreement), or the statute of limitations has expired and collection has ended.

Example: You could be compliant (all returns filed, deadlines met) and current (paying estimated taxes) but not resolved (you still owe $50,000 in back taxes on an installment agreement).

How to check if returns are filed

The easiest way to check if a return was filed is to request an account transcript from the IRS. This shows every return on file for you.

Step 1: Request your account transcript

Go to IRS.gov and order a transcript
Or call 1-800-908-9946
Or mail Form 4506-C to your local IRS office

Step 2: Review the transcript

Look for TC 150 (Tax Return Filed) codes for the years you're checking. If TC 150 appears, that return is on file. If it doesn't appear, the return wasn't filed.

Step 3: Check dates

The date next to TC 150 is when the return was posted to your account. For example, if you filed a 2023 return in April 2024, TC 150 should appear in May or June 2024 (processing time).

What if no return appears for a year you filed?

Return was never received by IRS
Return was filed but is still processing (can take 6+ months in some cases)
There's an error in the filing (wrong SSN, name mismatch)
Return was rejected after filing

How to check if payments are current

"Current" on payments means you're meeting your filing and payment obligations going forward. This includes:

Recent returns are filed
If self-employed, estimated quarterly payments are made
If on an installment agreement or OIC, you're making those payments
You're not in violation of any open requirements

How to verify:

Check most recent returns: Account transcript should show current-year return filed
Check payment record: Look for TC 120 (payment) entries showing recent payments
Check notices: If you have an installment agreement or payment plan, IRS will notify you of status
Check balance: If you have a balance, look for recent payment activity (TC 120)

If your most recent return is 2 years old and no payments appear in the last year, you're not current.

How to identify open requirements

An "open requirement" is something the IRS is waiting for you to do. This might be:

File a missing return
Respond to a notice (provide documents, sign a form)
Make a payment or meet installment agreement obligation
Provide clarification on a return
Complete an appeal or protest

How to find open requirements:

Check IRS notices: Any notice you received lists what's required and deadlines
Check your account online: IRS.gov account shows pending actions
Call the IRS: 1-800-829-1040 to ask about open items on your account
Request Record of Account: This transcript shows chronological history including action items

If you have open requirements and don't meet them by the deadline, the IRS can take collection action (levy, lien, wage garnishment).

Reading your transcript for compliance status

Your account transcript gives you a snapshot of compliance. Here's what to look for:

Signs of compliance:

TC 150 appears for all recent years — Returns are filed
No TC 570 (hold) on the account — No holds blocking processing
Recent TC 120 (payments) if balance exists — You're making payments
No open notices requiring action — You've responded to all requests
Status shows "Compliant" — IRS explicitly marks you as compliant

Signs of non-compliance:

TC 150 missing for required years — Returns not filed
TC 570 (hold) on account — Something is blocking processing
No recent payments but balance owed — Not making payments
Open notices with no response codes — Requirements not met
Status shows "Non-Compliant" — IRS has flagged your account

Understanding collection activity

Collection activity doesn't mean you're not compliant—it means the IRS is trying to collect a debt. You can be compliant (all returns filed, current) and still have collection activity (levies, liens).

Common collection codes:

TC 520 — Lien filed
TC 720 — Levy issued
TC 827 — Wage or income levy
TC 971 + Collection note — Collection action taken

Collection activity indicates:

You have unpaid tax debt
You didn't respond to previous notices
Collection alternatives (IA, OIC, CNC) haven't been pursued or granted

Collection activity is separate from compliance. You can resolve collection while remaining compliant (filing returns, responding to notices going forward).

When you need written confirmation

Sometimes reading a transcript isn't enough. You need official written confirmation of your compliance status. This is necessary for:

Loan applications — Lenders often want written proof you're compliant
Background checks or clearances — Government or employer requirements
Professional licensing — Some licenses require proof of tax compliance
Legal disputes — You need official documentation
Collection dispute — Proving to a creditor or court that you're compliant

How to get written confirmation:

Call IRS at 1-800-829-1040 and ask for a letter confirming compliance status
Request a "Compliance Certificate" if available in your state or situation
Order a formal IRS transcript (official document on IRS letterhead)
Ask your tax professional to request a letter from the IRS

A third-party compliance review can also provide written documentation of your IRS account status—often clearer and easier to understand than raw IRS transcripts.

Common compliance scenarios

Scenario 1: "I haven't filed in 5 years. Am I compliant?"

No. You're not compliant until all required returns are filed. You may be able to become compliant by filing all missing years. Once they're filed and accepted, compliance status can be re-established.

Scenario 2: "I have a payment plan. Does that mean I'm compliant?"

Partially. If you have a payment plan (installment agreement) and you're making those payments on time, you're compliant with the plan. But you still have outstanding debt. You're not "resolved" but you're compliant with the IRS arrangement.

Scenario 3: "My transcripts show all returns filed. But I have a lien. Am I compliant?"

Yes—unless you're not making required payments. A lien doesn't mean you're not compliant. It means you have unpaid debt. You can be compliant (returns filed, responding to notices) and still have a lien (unpaid debt).

Scenario 4: "The IRS sent me a notice. What does that mean for compliance?"

It means you need to respond. Compliance requires meeting procedural deadlines. If the IRS sent a notice, read it carefully, follow the instructions, and respond by the deadline. Failing to respond violates compliance.

Scenario 5: "I'm current on this year but have old unpaid debt. Am I compliant?"

Yes—on going forward obligations. You're "current" (recent returns filed, payments current). The old debt doesn't affect forward compliance, but it does mean you have an unresolved matter with the IRS.