The commission recommends that WADA immediately declare the Russian federation "non-compliant" with the global anti-doping code, and that the IAAF suspend the federation from competition.
The report recommends that the International Olympic Committee not accept any entries from the Russian federation until the body has been declared compliant with the code and the suspension has been lifted.
Such a decision could keep Russian athletes out of next year's Olympics in Rio de Janeiro.
But the WADA report says "timely action" by Russian authorities "should mean that no significant competitions will be missed."
The gold and bronze-medal winners at 800 metres at the London Olympics are among five Russian runners targeted for lifetime bans by the commission tasked with investigating widespread doping in that country.
The commission recommended lifetime bans for Olympic champion Mariya Savinova-Farnosova and bronze medallist Ekaterina Poistogova.
The commission suspects Russia has been using an obscure laboratory on the outskirts of Moscow to help cover up widespread doping, possibly by pre-screening athletes' doping samples and ditching those that test positive.
It says whistleblowers and confidential witnesses "corroborated that this second laboratory is involved in the destruction and the coverup of what would otherwise be positive doping tests."
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