A bill awaiting President Donald Trump's signature aims to make IRS error notices clearer and easier to understand. The IRS Math and Taxpayer Help Act would require the agency to spell out exactly what mistake was found on a tax return, how much tax is owed, how to respond and the deadline for taking action. The House passed the bill in March, followed by the Senate in October.
If enacted, the measure would require the IRS to send clearer notices when it flags a math or clerical error on a taxpayer's return. This is because, up until now, many taxpayers received confusing error notices from the IRS that often came with legal language that was hard to understand and no clear next step. That lack of clarity led to missed appeals and inflated tax bills.
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"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," Sen. Elizabeth Warren, a Democrat from Massachusetts, said in a statement. "Our bill is a common-sense bipartisan solution to protect taxpayers and help put more money in their pockets.”
Though the bill would not reduce tax return errors, it may make it easier for taxpayers to understand what the mistakes were and the next steps to take. The new legislation requires that IRS math error notices must include:
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- Explanation of the specific line item or section of the code that was changed
- An itemized computation of the change
- The telephone number for the automated phone transcript service
- The taxpayer's required response date
That said, though the IRS will be required to write clearer notices, you’re still responsible for responding quickly. Make sure to read every notice carefully, verify the changes against your original return and reach out to a tax professional if something seems off or if you’re unsure about anything. You have 60 days to dispute a math or clerical adjustment, so don't ignore the letter.
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