U.S. Sen. Bill Cassidy, M.D. (R-LA) said his legislation making math error notices from the Internal Revenue Service easier for taxpayers to understand had passed the Senate and was heading to President Donald Trump’s desk.
The Internal Revenue Service Math and Taxpayer Health (IRS MATH) Act would help the IRS inform taxpayers about math errors and how the department had adjusted their returns.
“Americans should have every opportunity to keep their hard-earned income,” Cassidy said. “If the IRS thinks someone made an honest mistake filing their taxes, the IRS should be clear about how to correct it.”
Current IRS code allows the agency to make “math error” adjustments to returns that contain simple math or clerical errors. The adjustments are made automatically and require taxpayers to initiate responses to reverse them within 60 days. If the taxpayer does not contest the notice within 60 days, they forfeit the right to challenge the change.
The IRS MATH Act requires that the IRS improve notices of math or clerical errors by identifying the line item the IRS is changing, explaining the reason for the change and listing the taxpayer’s required response date. The legislation also requires the IRS to notify the taxpayer of abatement determinations and requires the U.S. Treasury Secretary to provide additional procedures for requesting an abatement of a math or clerical error adjustment, including by phone or in person.
“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,” U.S. Sen. Elizabeth Warren (D-MA), the bill’s co-sponsor, said. “Our bill is a common-sense bipartisan solution to protect taxpayers and help put more money in their pockets.”
Similar legislation introduced by U.S. Reps. Brad Schneider (D-IL) and Randy Feenstra (R-IA) already passed in the House. The legislation now heads to the President’s desk to be signed into law.