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 by the IRS regarding math or clerical errors on tax returns. The bill mandates that these notices include comprehensive explanations of the errors, itemized computations of adjustments, and clear instructions on how taxpayers can request abatement. It also requires the Treasury to establish procedures for taxpayers to request abatements and implement a pilot program using certified mail for error notices.
Expected Effects
The bill is likely to result in taxpayers receiving clearer and more detailed explanations when the IRS identifies math or clerical errors on their tax returns. This increased transparency should empower taxpayers to better understand and address these errors, potentially reducing disputes and improving compliance. The pilot program using certified mail may also lead to higher response rates from taxpayers.
Potential Benefits
- Improved Taxpayer Understanding: Clearer explanations of errors will help taxpayers understand the issues.
- Reduced Disputes: Detailed information and abatement procedures may reduce disagreements with the IRS.
- Increased Compliance: Easier to understand notices may lead to more accurate future filings.
- Better Communication: Mandated telephone number for automated transcript service improves communication.
- Pilot Program Evaluation: The pilot program will provide data on the effectiveness of certified mail.
Potential Disadvantages
- Increased Administrative Burden: The IRS may face increased administrative burden in providing more detailed notices.
- Potential for Confusion: Despite efforts to use plain language, some taxpayers may still find the notices confusing.
- Cost of Pilot Program: Implementing the certified mail pilot program will incur additional costs.
- Delayed Implementation: The effective date is 12 months after enactment, delaying immediate benefits.
- Limited Scope: The bill only addresses math and clerical errors, not other types of tax issues.
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution, as it seeks to improve the efficiency and fairness of tax administration, ultimately benefiting the American people. Specifically, it does not appear to infringe upon any individual liberties outlined in the Bill of Rights. Congress's authority to levy and collect taxes is established in Article I, Section 8, Clause 1, and this bill provides additional guidance on how the IRS should communicate with taxpayers regarding potential errors.
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).