Internal Revenue Service Math and Taxpayer Help Act
Summary
The Internal Revenue Service Math and Taxpayer Help Act (H.R. 998) aims to improve the clarity and specificity of notices issued by the IRS regarding math or clerical errors on tax returns. It mandates that these notices include comprehensive, plain language descriptions of the error, the relevant section of the Internal Revenue Code, and an itemized computation of adjustments. The Act also requires the IRS to establish procedures for taxpayers to request abatements of assessments and conduct a pilot program using certified or registered mail for error notices.
Expected Effects
This act will likely lead to more transparent and understandable communication from the IRS to taxpayers regarding errors on their tax returns. It should also streamline the process for taxpayers to address and potentially abate these errors. The pilot program will assess the effectiveness of certified mail in improving taxpayer response rates.
Potential Benefits
- Improved Clarity: Taxpayers will receive clearer explanations of errors, making it easier to understand and correct them.
- Easier Abatement Requests: Standardized procedures for requesting abatements will simplify the process for taxpayers.
- Reduced Errors: By understanding the errors, taxpayers can avoid making the same mistakes in the future.
- Increased Transparency: The itemized computation of adjustments will provide a clear breakdown of how the error affects the tax return.
- Better Communication: The pilot program may lead to more effective methods of communication between the IRS and taxpayers.
Potential Disadvantages
- Increased Administrative Burden: The IRS may face increased administrative burden in implementing the new requirements for error notices and abatement procedures.
- Potential for Confusion: Despite the aim for plain language, some taxpayers may still find the notices confusing.
- Implementation Costs: The pilot program and procedural changes will incur costs for the IRS.
- Delayed Implementation: The effective date is 12 months after enactment, meaning taxpayers will not immediately benefit from these changes.
- Limited Scope: The Act only addresses math and clerical errors, not other types of tax issues.
Constitutional Alignment
This Act appears to align with the general welfare clause of the Constitution, as it aims to improve the efficiency and fairness of tax administration. Specifically, it relates to Article I, Section 8, which grants Congress the power to lay and collect taxes. The Act does not appear to infringe upon any specific constitutional rights or limitations.
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).