H.R. 998 — Internal Revenue Service Math and Taxpayer Help Act

This section revises IRS notices of mathematical or clerical errors under IRC §6213(b)(1) to require that such notices (1) be sent to the taxpayer's last known address; (2) describe the error in comprehensive plain language, specifying its type, the related IRC section, its nature, and the specific return line; (3) provide an itemized computation of adjustments to specified items (e.g., adjusted gross income, taxable income, itemized or standard deductions, specified credits, taxes, withholding, estimated payments, refunds or amounts owed, net operating loss carryforwards, or credit carryforwards); (4) include the telephone number for the automated phone transcript service; and (5) display in bold 14-point font, immediately next to the taxpayer's address on page 1, the date by which the taxpayer may request abatement of the assessment. Such notices must identify specific errors and may not list potential or alternative errors, though all applicable specific errors must be listed. (As background, §6213(b) authorizes the IRS to correct math or clerical errors on returns and make immediate assessments without issuing a deficiency notice, subject to taxpayer abatement requests within 60 days.) The section also requires notices of abatement decisions under §6213(b)(2) to be sent to the taxpayer's last known address, describe the abatement in plain language, and include itemized computations of resulting adjustments. The amendments apply to notices sent more than 12 months after enactment. Additionally, the section directs the Secretary of the Treasury, within 180 days of enactment, to establish procedures allowing taxpayers to request such abatements in writing, electronically, by telephone, or in person; and, within 18 months of enactment and in consultation with the National Taxpayer Advocate, to implement a pilot program sending a statistically significant portion of such notices by certified or registered mail with e-signature receipt confirmation and to report to Congress on program results aggregated by error type (e.g., number and dollar amounts of errors and abatements, effects on taxpayer responses).