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Thursday, November 7, 2024

Cassidy, Warren Introduce Legislation to Simplify IRS Notices, Help Taxpayers

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Senator Bill Cassidy | Sen. Bill Cassidy Official Website

Senator Bill Cassidy | Sen. Bill Cassidy Official Website

WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA) and Elizabeth Warren (D-MA) introduced the Internal Revenue Service Math and Taxpayer Health (IRS MATH) Act, legislation that aims to simplify IRS notices and help taxpayers understand and address math error corrections.

"The IRS is confusing enough," said Dr. Cassidy. "If there’s a mistake on a tax return, the IRS needs to explain it in plain English and there must be clear lines of communication. Taxpayers should have every opportunity to keep their hard-earned income."

"Filing your taxes can get confusing — and sometimes, mistakes happen," said Senator Warren. "And when they do, taxpayers shouldn’t be forced to decipher confusing, intimidating, and financially-impactful letters from the IRS. It’s time to improve procedures and notices that correct these errors so that hardworking Americans can get the money they’re entitled to and get back to their daily lives."

The legislation addresses the issues with math error notices, which are often vague and confusing for taxpayers. These notices do not clearly explain the errors corrected by the IRS or inform taxpayers of their right to challenge the IRS's position within a 60-day timeframe.

The IRS MATH Act seeks to improve the system to assist taxpayers who may not have the resources to navigate the complex correspondence process on their own. U.S. Representatives Brad Schneider (D-IL-10) and Randy Feenstra (R-IA-04) introduced the bill in the House.

Background information provided explains that math error corrections, allowed by the Internal Revenue Code, are expedited adjustments to tax returns containing simple math or clerical errors. Unlike other adjustments, math and clerical corrections are automatically made by the IRS and require taxpayers to initiate responses within 60 days to challenge them.

The legislation aims to provide clarity to taxpayers by specifying the exact issues in math error notices and ensuring that taxpayers are properly informed of how to contest IRS adjustments, ultimately reducing errors on future tax returns and minimizing risks to taxpayers.

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