As CPAs and EAs advising taxpayers on compliance and controversy matters, understanding shifts in IRS procedural requirements is critical, especially concerning immediate assessments based on mathematical or clerical errors. The One Hundred Nineteenth Congress enacted H.R. 998, officially cited as the "Internal Revenue Service Math and Taxpayer Help Act". This legislation mandates substantial changes to the content and delivery of notices issued under Section 6213(b)(1) of the Internal Revenue Code of 1986 (the Code), requiring significantly enhanced specificity and transparency from the IRS.

As identical bills have been passed by both houses, it will become law once sent to the President so long as he signs the bill.

Statutory Revisions to Math Error Notices

Section 2 of the Act amends Section 6213(b)(1) of the Code, improving the requirements for notices related to math or clerical errors. The statutory framework is adjusted by striking the existing introductory language and inserting a new subparagraph (A) covering the general rule, followed by a new subparagraph (B) establishing the specific content requirements for the notice.

Mandate for Comprehensive, Plain Language Error Description

The new legislation establishes rigorous specificity standards for the required notice. The notice provided under subparagraph (A) must now be sent to the taxpayer’s last known address. Crucially, the IRS must describe the mathematical or clerical error in comprehensive, plain language.

The standard of specificity requires the notice to include four explicit components regarding the error itself:

The type of error.
The section of the Code to which the error relates.
A description of the nature of the error.
The specific line of the return on which the error was made.

Furthermore, new clause (ii) explicitly prohibits ambiguity, stating that a notice which provides multiple potential or alternative errors that might apply to the return shall not be considered sufficiently specific for the purposes of the description requirement. However, if multiple distinct and specific errors apply to the return, all such specific errors should be listed.

Requirement for Itemized Computations and Adjustments

In addition to specifying the error, the revised statute requires the notice to contain an itemized computation of any direct or incidental adjustments made to the return in correction of the error. This requirement extends to any adjustments made to a comprehensive list of financial categories:

Adjusted gross income.
Taxable income.
Itemized or standard deductions.
Nonrefundable credits.
Specific refundable credits, including those under sections 24, 25A, 32, 35, or 36B, credits related to undistributed long-term capital gains on Form 2439, and credits for Federal taxes paid on fuels claimed on Form 4136, as well as any other refundable credits.
Income tax.
Other taxes.
Total tax.
Federal income tax withheld or excess tax withheld under section 3101 or 3201(a).
Estimated tax payments, including the amount applied from the prior year’s return.
Refund or amount owed.
Net operating loss carryforwards.
Credit carryforwards.

New Taxpayer Communication and Display Mandates

To further assist taxpayers and practitioners, the IRS is required to include the telephone number for the automated phone transcript service in the notice.

A significant new requirement concerns the taxpayer’s right to request abatement of an assessment. The notice must now display the date by which the taxpayer may request abatement of any specified assessment pursuant to paragraph (2)(A). This abatement date must be displayed in a highly visible manner: in bold, font size 14, and immediately next to the taxpayer’s address on page 1 of the notice.

Requirements for Abatement Notices

The Act also addresses the subsequent communication following an abatement request by amending Section 6213(b)(2) with the addition of new subparagraph (C). Upon determining that an abatement pursuant to subparagraph (A) is warranted, the Secretary must send notice of such abatement to the taxpayer’s last known address.

This abatement notice must describe the abatement in comprehensive, plain language. It must also provide an itemized computation of any adjustments made to the items described in the original math or clerical error notice, including changes to any item listed under paragraph (1)(B)(i)(III).

Effective Date and Procedural Implementation

The amendments imposing these new requirements apply to notices sent after the date which is 12 months after the date of the enactment of this Act.

The Act includes specific deadlines for the Secretary of the Treasury (or delegate) to establish the necessary administrative infrastructure. Not later than 180 days after the date of enactment, the Secretary must provide for procedures allowing a taxpayer to request an abatement (as referred to in Section 6213(b)(1)(B)(i)(V)). These procedures must accommodate written, electronic, telephone, or in-person abatement requests.

Mandated Pilot Program for Certified Mail Delivery

The Secretary of the Treasury (or delegate), in consultation with the National Taxpayer Advocate, is also required to implement a pilot program not later than 18 months after the date of the enactment of this Act.

The pilot program’s purpose is to test the delivery method for these notices. It requires sending a statistically significant portion of mathematical or clerical error notices under Section 6213(b) by certified or registered mail with e-signature confirmation of receipt. The Secretary must subsequently report to Congress, aggregated by the type of error under Section 6213(g), on key metrics:

The number of errors noticed and the associated dollar amounts.
The number and dollar amounts of tax abatements.
The effect of the pilot program on taxpayer response, adjustments, or abatements.

The report must conclude on the effectiveness of certified or registered mail, both with and without return receipt, and offer recommendations for improving taxpayer response rates generally.

Prepared with assistance from NotebookLM.