The Senate passed Tuesday afternoon the Internal Revenue Service Math and Taxpayer Help (IRS MATH) Act, bipartisan legislation to simplify notices informing taxpayers of mistakes on their tax filings.
The bill, introduced by Sen. Elizabeth Warren, D-Mass., requires the IRS to provide specific information on a notice related to a math or clerical error, send a notice related to an abatement of taxes assessed due to a math or clerical error, provide procedures for requesting such an abatement, and implement a pilot program for sending notices of a math or clerical error.
“No one should have to spend a fortune on a lawyer or hours trying to figure out what went wrong on their taxes when the IRS already knows the answer,” Warren said Tuesday in a statement.
Under the bill, a notice sent by the IRS regarding a math or clerical error must include:
- a clear description of the error and the specific federal tax return line on which the error was made;
- an itemized computation of adjustments required to correct the error;
- the telephone number for the automated transcript service; and
- the deadline for requesting an abatement of any tax assessed due to the error.
“If the IRS thinks someone made an honest mistake filing their taxes, the IRS should be clear about how to correct it," added Sen. Bill Cassidy, R-La., who co-sponsored the bill.
Further, the bill requires the IRS "to send a notice related to an abatement of tax assessed due to a math or clerical error that clearly describes the abatement and includes an itemized computation of adjustments to be made to the items described in the notice of the error."
The bill also requires the Treasury secretary to provide additional procedures for requesting an abatement of a math or clerical error adjustment, including by telephone or in person, and creates a pilot program coordinated by the IRS and National Taxpayer Advocate to determine the benefit of sending math or clerical error notices by certified or registered mail.
The full House passed the bill by voice vote in March. The IRS MATH Act now heads to President Donald Trump’s desk for his signature.
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