Taxpayers total compliance in paying taxes owed has been roughly stagnant over the past 20 years at about 87%. Annual tax losses from the noncompliance have been well over $100 billion. This report discusses IRS new compliance research approach. Its objectives were to: review the many lessons IRS has learned from past compliance efforts in identifying factors most critical to the success of its new compliance research approach, & analyzes the current status of the new approach & its ability to incorporate these factors. Charts & tables.