Math Error Legislation Heads to President’s Desk

The Senate on October 20 sent to the president’s desk legislation (H.R. 998) that will impose new notice requirements and restrictions on the IRS’s ability to use math error authority. 

Section 6213 gives the IRS authority to correct certain mathematical, clerical, or transcription errors without going through normal deficiency procedures. H.R. 998 will generally require the IRS to update its math error abatement procedures and provide more detailed information in math error notices. 

Under the legislation, notices regarding errors must be sent to the taxpayer’s last known address and include:

• A description of the error in plain language, including the specific code section and line number on the return involved in the adjustment; 
• The telephone number for automated phone transcript service;
• An itemized computation of adjustments; and
• The due date for a request of abatement  
  
  

The IRS will also be required to update its abatement procedures to allow taxpayers to request abatement in writing, electronically, by telephone, or in person.

H.R. 998 passed the House along with several other bipartisan tax administration bills earlier this year. The bill passed the Senate by unanimous consent on October 20 and is expected to be signed by the president imminently. 

This is the second of the House-passed tax administration bills to move through the Senate by unanimous consent. A bill expanding tax deadlines disaster relief (H.R. 517) was signed into law on July 24. The other House-passed tax administration bills could also be considered by unanimous consent, although Senate tax writers are pushing for broader bipartisan tax administration legislation.