H.R.998 - Internal Revenue Service Math and Taxpayer Help Act (119th Congress)
Summary
H.R.998, the Internal Revenue Service Math and Taxpayer Help Act, aims to amend the Internal Revenue Code of 1986 to improve the clarity and specificity of notices issued for math and clerical errors. The bill mandates that these notices include comprehensive explanations of the errors, itemized computations of adjustments, and contact information for assistance. It also requires a pilot program to test the use of certified mail for these notices and procedures for taxpayers to request abatements.
Expected Effects
The bill will likely result in taxpayers receiving clearer and more detailed explanations when the IRS identifies math or clerical errors on their tax returns. This should reduce confusion and potentially decrease the number of disputes arising from these errors. The pilot program may also lead to improved methods for delivering important tax-related notices.
Potential Benefits
- Improved Taxpayer Understanding: Clearer explanations of errors will help taxpayers understand and correct mistakes.
- Reduced Disputes: More detailed information may lead to fewer disagreements with the IRS.
- Easier Abatement Requests: Established procedures for requesting abatements will simplify the process for taxpayers.
- Enhanced Communication: The pilot program could identify better ways to communicate with taxpayers.
- Increased Transparency: Itemized computations will provide a clear breakdown of adjustments.
Potential Disadvantages
- Increased Administrative Burden: The IRS may face increased costs and workload to implement the new requirements.
- Potential for Complexity: While aiming for clarity, the detailed information could still be overwhelming for some taxpayers.
- Delayed Implementation: The effective date is 12 months after enactment, potentially delaying benefits.
- Limited Scope: The bill only addresses math and clerical errors, not other types of tax issues.
- Cost of Pilot Program: The pilot program will incur costs for certified/registered mail and analysis.
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution by aiming to improve the efficiency and fairness of tax administration. It does not appear to infringe upon any specific constitutional rights. The bill falls under Congress's power to lay and collect taxes, as outlined in Article I, Section 8, Clause 1 of the Constitution.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).