The IRS MATH Act of 2025 would overhaul how the Internal Revenue Service (IRS) communicates math and clerical error corrections to taxpayers. The bill requires notices of these errors to be far more specific and clear, including plain-language explanations of the error, the exact line on the return affected, and an itemized calculation of all adjustments to tax owed or refunds. In addition, if an adjustment is abated, the IRS must send a similarly detailed abatement notice. The act also creates new procedural options for taxpayers to request abatements, and it launches a pilot program to test the use of certified or registered mail with e-signature to deliver these notices. Overall, the aim is to improve taxpayer understanding, reduce confusion, and potentially improve compliance with more transparent, timely notices. The changes would apply to notices issued more than a year after enactment, and a 180-day window would be provided to establish abatement-request procedures, with a separate pilot program to evaluate mailing methods and effectiveness.
Key Points
- 1Specific, plain-language notices: For math or clerical error notices, the IRS must describe the error in comprehensive, plain language, identify the type and section of the code, describe the nature of the error, and give the exact line on the return where the error occurred. It must also show an itemized computation of all adjustments to be made, covering income, deductions, credits (including a long list of credits), taxes, withholdings, estimated payments, refunds or amounts owed, and any carryforwards. The notice must be sent to the taxpayer’s last known address, and must include the automated transcript telephone number and a bold display of the deadline to request abatement.
- 2Multiple specific errors only: If there are multiple specific errors, all applicable errors must be listed; general lists of potential errors are not considered sufficiently specific.
- 3Abatement notice requirements: When an abatement is determined, the IRS must send a detailed abatement notice that explains the abatement and provides an itemized computation of any changes to the items described in the math/clerical error notice.
- 4Effective date: These notice enhancements would apply to notices issued more than 12 months after enactment.
- 5New abatement procedures: Within 180 days, the Treasury Secretary must establish procedures by which taxpayers can request an abatement in writing, electronically, by telephone, or in person.
- 6Pilot program on mailing and transparency: Within 18 months, the Secretary must implement a pilot program sending a limited number of notices by certified or registered mail with e-signature confirmation, and report to Congress on error types, dollar amounts involved, abatements, and impacts on taxpayer response, including recommendations about the effectiveness of certified mail.