HR998-119

What This Bill Does

This bill requires the IRS to provide more detailed and understandable notices when correcting math or clerical errors on tax returns. When the IRS finds a math or clerical error, the notice to the taxpayer must now explain the error in plain language, identify the specific line of the return where the error occurred, and provide an itemized computation showing every adjustment -- from AGI to credits to refund amount. The deadline to dispute the correction must be displayed prominently in bold 14-point font on page 1. The bill also prohibits vague notices that list multiple potential errors without specifying which one actually applies, requires plain-language confirmation notices when the IRS grants an abatement, and mandates new procedures for taxpayers to request abatements in writing, electronically, by phone, or in person. A pilot program must test sending error notices by certified mail with e-signature confirmation.

Who Benefits and How

• Individual taxpayers benefit most directly: error notices become comprehensible rather than opaque, with specific explanations of what went wrong and exactly how it changes their tax liability. The prominent dispute deadline and multiple abatement channels (written, electronic, phone, in-person) make it easier to challenge incorrect corrections.
• Low-income and self-filing taxpayers benefit disproportionately because they are less likely to have professional tax advice and more dependent on the notice itself to understand what happened.
• Tax preparation services benefit from clearer error notices that reduce the time needed to research and respond to IRS corrections on behalf of clients.
• The National Taxpayer Advocate gains a formal consultative role in designing the certified mail pilot program.

Who Bears the Burden and How

• The IRS bears the primary burden: it must redesign its notice systems to generate itemized, line-by-line computations for every math error notice, implement plain-language requirements, add bold 14-point formatting for dispute deadlines, create new abatement request procedures across four channels, and run a certified mail pilot program -- all within 12 to 18 months of enactment.
• No new burdens on taxpayers -- the bill exclusively adds IRS obligations.

Key Provisions

• Requires error notices to identify the type of error, the relevant Internal Revenue Code section, a description of the error’s nature, and the specific return line number
• Mandates itemized computation showing adjustments to AGI, taxable income, deductions, all credit categories, taxes, withholding, estimated payments, refund/amount owed, and carryforwards
• Requires the dispute deadline in bold, font size 14, on page 1 next to the taxpayer’s address
• Prohibits notices listing multiple potential errors -- each specific error must be individually identified
• Requires plain-language abatement confirmation notices with itemized adjustment computations
• Mandates abatement request procedures via writing, electronic, telephone, and in-person channels within 180 days
• Requires a certified/registered mail pilot program with e-signature confirmation within 18 months, with Congressional reporting.