Bill Summary
The "Internal Revenue Service Math and Taxpayer Help Act of 2025" (IRS MATH Act of 2025) aims to enhance the clarity and effectiveness of notices issued by the IRS regarding mathematical and clerical errors on tax returns. Key provisions of the legislation include:
1. **Clearer Notices**: The IRS is required to provide detailed explanations of any identified errors in simple language. This includes specifying the type of error, the related section of the tax code, a description of the error, and the exact line on the tax return where the error occurred.
2. **Itemized Adjustments**: The notices must include a comprehensive breakdown of any adjustments resulting from the error, detailing changes to various tax components like gross income, deductions, credits, and any refunds or amounts owed.
3. **Abatement Notifications**: If an error is abated (canceled), the IRS must inform the taxpayer with clear language and an itemized summary of any adjustments made.
4. **Request Procedures**: The IRS will establish procedures allowing taxpayers to request an abatement through multiple communication methods, including electronically and by phone.
5. **Pilot Program**: A pilot program will be initiated to test the effectiveness of sending these notices via certified or registered mail, with a report to Congress evaluating the impact on taxpayer responses.
Overall, the legislation seeks to improve taxpayer understanding and engagement with the IRS, ensuring that notifications regarding errors are informative and accessible. The changes will take effect 12 months after the law is enacted.
Possible Impacts
The "Internal Revenue Service Math and Taxpayer Help Act of 2025" (IRS MATH Act) aims to enhance the clarity and usefulness of math and clerical error notices sent to taxpayers. Here are three examples of how this legislation could affect individuals:
1. **Improved Understanding of Errors**: Taxpayers receiving notices about math or clerical errors will benefit from clearer, more detailed explanations of the errors in plain language. This means individuals can better understand what the error is, how it affects their tax return, and the specific line items involved. As a result, taxpayers may feel more empowered to address and rectify issues promptly without confusion.
2. **Easier Correction Process**: The legislation mandates that notices include an itemized computation of adjustments needed due to the error, along with a clear description of how these adjustments impact the taxpayer's total tax, refunds, and credits. This detail simplifies the process for individuals to correct their returns and ensures they are aware of potential changes to their tax obligations, enhancing compliance and potentially reducing penalties for unintentional mistakes.
3. **Access to Support and Resources**: By requiring that notices include a contact number for an automated phone transcript service, the legislation improves access to support for taxpayers. Individuals may find it easier to seek assistance or clarification regarding their notices, leading to better resolution of tax issues and less frustration navigating the complexities of tax law. This can enhance taxpayer confidence in dealing with the IRS and facilitate more efficient communication.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 608 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 608
To amend the Internal Revenue Code of 1986 to require additional
information on math and clerical error notices.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 18, 2025
Ms. Warren (for herself and Mr. Cassidy) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to require additional
information on math and clerical error notices.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Internal Revenue Service Math and
Taxpayer Help Act of 2025'' or the ``IRS MATH Act of 2025''.
SEC. 2. IMPROVEMENT OF NOTICES OF MATH OR CLERICAL ERROR.
(a) In General.--Section 6213(b)(1) of the Internal Revenue Code of
1986 is amended--
(1) by striking ``errors.--If the taxpayer'' and inserting
``errors.--
``(A) In general.--If the taxpayer'',
(2) by striking ``Each notice'' in the second sentence and
inserting ``Subject to subparagraph (B), each notice'', and
(3) by adding at the end the following new subparagraph:
``(B) Specificity of math or clerical error
notice.--
``(i) In general.--The notice provided
under subparagraph (A) shall--
``(I) be sent to the taxpayer's
last known address,
``(II) describe the mathematical or
clerical error in comprehensive, plain
language, including--
``(aa) the type of error,
``(bb) the section of this
title to which the error
relates,
``(cc) a description of the
nature of the error, and
``(dd) the specific line of
the return on which the error
was made,
``(III) an itemized computation of
any direct or incidental adjustments to
be made to the return in correction of
the error, including any adjustment to
the amount of--
``(aa) adjusted gross
income,
``(bb) taxable income,
``(cc) itemized or standard
deductions,
``(dd) nonrefundable
credits,
``(ee) credits under
section 24, 25A, 32, 35, or
36B, credits claimed with
respect to undistributed long-
term capital gains on Form
2439, credits for Federal taxes
paid on fuels claimed on Form
4136, and any other refundable
credits,
``(ff) income tax,
``(gg) other taxes,
``(hh) total tax,
``(ii) Federal income tax
withheld or excess tax withheld
under section 3101 or 3201(a),
``(jj) estimated tax
payments, including amount
applied from prior year's
return,
``(kk) refund or amount
owed,
``(ll) net operating loss
carryforwards, or
``(mm) credit
carryforwards,
``(IV) include the telephone number
for the automated phone transcript
service, and
``(V) display the date by which the
taxpayer may request to abate any
assessment specified in such notice
pursuant to paragraph (2)(A), in bold,
font size 14, and immediately next to
the taxpayer's address on page 1 of the
notice.
``(ii) No lists of potential errors.--A
notice which provides multiple potential or
alternative errors which may be applicable to
the return shall not be sufficiently specific
for purposes of clause (i)(II); however, if
multiple specific errors apply to the return
all such errors should be listed.''.
(b) Notice of Abatement.--Paragraph (2) of section 6213(b) of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new subparagraph:
``(C) Notice.--Upon determination of an abatement
pursuant to subparagraph (A), the Secretary shall send
notice to the taxpayer of such abatement which--
``(i) is sent to the taxpayer's last known
address,
``(ii) describes the abatement in
comprehensive, plain language, and
``(iii) provides an itemized computation of
any adjustments to be made to the items
described in the notice of mathematical or
clerical error, including any changes to any
item described in paragraph (1)(B)(i)(III).''.
(c) Effective Date.--The amendments made by this section shall
apply to notices sent after the date which is 12 months after the date
of the enactment of this Act.
(d) Procedures.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of the Treasury (or such
Secretary's delegate) shall provide for procedures by which a taxpayer
may request an abatement pursuant to section 6213(b)(1)(B)(i)(V) of the
Internal Revenue Code of 1986 in writing, electronically, by telephone,
or in person.
(e) Pilot Program.--Not later than 18 months after the date of the
enactment of this Act, the Secretary of the Treasury (or such
Secretary's delegate), in consultation with the National Taxpayer
Advocate, shall--
(1) implement a pilot program to send a trial number of
notices, in an amount which is a statistically significant
portion of all such notices, of mathematical or clerical error
pursuant to section 6213(b) of the Internal Revenue Code of
1986 by certified or registered mail with e-signature
confirmation of receipt, and
(2) report to Congress, aggregated by the type of error
under section 6213(g) of such Code to which the notices relate,
on--
(A) the number of mathematical or clerical errors
noticed under the program and the dollar amounts
involved,
(B) the number of abatements of tax and the dollar
amounts of such abatements, and
(C) the effect of such pilot program on taxpayer
response and adjustments or abatements to tax,
with conclusions drawn about the effectiveness of certified
mail, with and without return receipt, and any other
recommendations for improving taxpayer response rates.
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