The Internal Revenue Service (IRS) released its 2025 Data Book, an inside look at the actions and aspirations of the agency.
Each year the IRS releases the Data Book, a report detailing activities undertaken in the prior year. The Data Book provides statistics, budget and workforce figures, information on returns collected and processed, and details about IRS compliance efforts.
Regarding the agency's direction, IRS CEO Frank J. Bisignano stated, “Fiscal Year 2025 was a pivotal year, as we began the process of implementing tax relief for hardworking Americans enacted as part of the Working Families Tax Cuts Act. The numbers in the Data Book tell the story of an organization that serves as a key partner in the administration’s mission.”
What Does the 2025 IRS Data Book Reveal?
During 2025, the IRS processed approximately 162 million individual tax returns, along with 271 million federal returns and supporting documentation. Overall gross tax revenue was $5.3 trillion. Let’s take a look at some of the information from the report:
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Compliance: From criminal tax investigations, assessments, and tax collections, IRS agents were busy in 2025. In terms of additional taxes recommended or assessed, field examinations accounted for the largest amount, $19.1 billion. In order, correspondence audits, Automated Underreporter, and Automated Return Substitution programs accounted for $7.7 billion, $5.9 billion, and $2.9 billion, respectively.
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IRS tax audits: The IRS closed 497,621 examinations of tax returns last year. Of those, 12,192 taxpayers did not agree with examiner results. There were 16,158 examinations that resulted in refunds totaling $10.4 billion to taxpayers. Of that amount, $7.8 billion was refunded to corporations.
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Math-error notices: The two most common math-error categories were Tax Calculation/Other Taxes and Adjusted Gross/Taxable Income Amount. Approximately 951,789 math-error notices were sent to taxpayers. Although math-error notices are different from IRS audits, reviewing your return carefully before filing may help avoid these notices.
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Criminal tax investigations: The IRS investigates tax crimes involving income generated from both legal and illegal activities, including money laundering and narcotics-related activity. During 2025, the IRS initiated 2,792 new criminal tax investigations and closed 2,850 matters. The IRS also reported 2,043 investigations referred for prosecution, 1,611 convictions, and 1,225 defendants sentenced to prison.
For additional background on the audit process, see our resource, A Tutorial on IRS Audits. The guide explains the steps of an audit and what to do if additional tax is assessed.
What Do the Latest IRS Criminal Investigation Numbers Mean for Taxpayers?
The 2025 Data Book illustrates the significant consequences that can result from criminal tax investigations. If you have unreported income or are possibly involved in tax evasion, timely legal guidance can help you understand your exposure and legal options.
At Robert J. Fedor, Esq., L.L.C., we provide strategic legal guidance on options that can help you navigate IRS inquiries or manage a potential criminal tax allegation. Contact our legal team at 440-250-9709. We serve clients internationally and throughout Northeast Ohio, Chicago and New York City from our offices in Cleveland and Chicago.
