Internal Revenue Service Math and Taxpayer Help Act
The Internal Revenue Service Math and Taxpayer Help Act would reform how the IRS communicates math and clerical error adjustments to taxpayers. The bill requires that any notices of mathematical or clerical error (under current law, IRC 6213(b)) be much more specific and transparent. Notices would have to be sent to the taxpayer’s last known address, explain the exact nature and section of the error in plain language, provide a line-by-line description of the return and an itemized computation of all adjustments (including changes to income, deductions, credits, tax, withholdings, refunds or amounts owed, and any loss or credit carryforwards). It also requires a clear abatement notice when an adjustment is abated, sets a process for requesting abatement, and imposes a pilot program to test certified or registered mail delivery with an e-signature confirmation. The overall aim is to improve taxpayer understanding and potentially improve responses and outcomes in math/clerical error cases.
Key Points
- 1Enhanced notice content: Notices must include last known address, comprehensive plain-language description of the error, the type and section of the error, a description of the nature and exact line on the return, and an itemized computation of all adjustments (covering income, deductions, credits, taxes, withholdings, refunds/amount owed, NOL/credit carryforwards, etc.), plus a contact phone transcript number and a bold, prominently displayed deadline to request abatement.
- 2Specificity over multiple potential errors: If there are multiple specific errors applicable, all must be listed; generic lists of potential errors are not acceptable.
- 3Abatement notices: When an abatement is determined, the IRS must send a separate abatement notice with the same standards of clarity and with an itemized computation of any adjustments affected by the abatement.
- 4Effective date: The statute changes apply to notices sent 12 months after enactment.
- 5New abatement request procedures: Within 180 days, the IRS must establish procedures for taxpayers to request abatement in writing, electronically, by telephone, or in person.
- 6Pilot program for delivery method: Within 18 months, the IRS must pilot sending a subset of notices by certified or registered mail with e-signature confirmation, and report to Congress on the number and dollar amounts involved, abatements, and the impact on taxpayer response and adjustments. The pilot will evaluate the effectiveness of certified/registered mail (with and without return receipt) and offer recommendations for improving response rates.