A recent proposal in Congress seeks to alter the U.S. Tax Code in a way that could assist taxpayers in comprehending revisions carried out by the Internal Revenue Service following the identification of errors in their filings.
The IRS Math and Taxpayer Help Act of 2024 has been presented in the Senate by Sens. Elizabeth Warren (D-MA) and Bill Cassidy (R-LA). The same bill has been introduced in the House by Reps. Randy Feenstra (R-IA) and Brad Schneider (D-IL), reported reported by the Fort Worth Star-Telegram. This legislation would compel the IRS to furnish detailed explanations when altering a taxpayer's filing, specifying the nature of the errors and providing a calculation of the amount the IRS claims is owed.
Under current regulations, the IRS can implement changes as long as the taxpayer is notified. Nevertheless, the IRS is not obligated to provide specifics regarding the rationale and method behind the initial changes.
The new bill would prevent the practice of reporting multiple potential errors without clearly describing the specific error that prompted the adjustment, as stated by the Star-Telegram.
The Taxpayer Advocate Service (TAS) — an independent entity within the IRS that aims to ensure equitable treatment of all taxpayers — revealed that the IRS issued at least 9.4 million math error notices in tax year 2022, according to the Star-Telegram. IRS data indicates that 8.3 million of those notices were related to errors in the calculation of COVID relief payments and child tax credits.
