S. 608: Internal Revenue Service Math and Taxpayer Help Act of 2025

This bill, known as the Internal Revenue Service Math and Taxpayer Help Act of 2025, aims to improve the communication process between the Internal Revenue Service (IRS) and taxpayers regarding math and clerical errors on tax returns. It proposes several key changes to the way the IRS issues error notices to ensure that taxpayers receive clearer and more detailed information. Here are the main components of the bill:

Changes to Error Notices

• The IRS must send a notice to the taxpayer’s last known address when a mathematical or clerical error is identified.
• The notice must be written in plain language and must include:
  • The type of error identified.
  • The specific section of tax law relating to the error.
  • A detailed description of the error's nature.
  • The exact line on the tax return where the error occurred.
  • An itemized computation of any adjustments to be made due to the error, covering various tax-related items like adjusted gross income, deductions, credits, and any refunds or amounts owed.
  • The IRS's telephone number for an automated phone transcript service.
  • The deadline by which the taxpayer can request an abatement (or reduction) of the assessed tax, prominently displayed on the notice.

Notice of Abatement

• If the taxpayer requests an abatement, the IRS is required to send a follow-up notice explaining the abatement, including a comprehensive description and an itemized calculation of any adjustments needed.

Implementation Timeline

• The changes introduced by this bill will take effect 12 months after its enactment.
• The Secretary of the Treasury is required to establish procedures for taxpayers to request an abatement within 180 days of the bill's enactment.
• A pilot program will be established within 18 months to test the process of sending error notices using certified or registered mail, aiming to confirm the receipt of these notices. The results of this pilot, including taxpayer responses and the effectiveness of certified mail, will be reported to Congress.

Impact on Taxpayers

Overall, this bill seeks to minimize confusion for taxpayers regarding math and clerical errors on their returns. By providing clearer, more specific information, the aim is to enhance taxpayer understanding and cooperation with the IRS in resolving any disputes or discrepancies.

Relevant Companies

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