On Oct. 20, the U.S. Senate unanimously passed legislation to simplify the way Americans interact with the IRS when they make mistakes on their tax returns.
The Internal Revenue Service Math and Taxpayer Help Act — or the IRS MATH Act — is awaiting signature from President Donald Trump.
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If the IRS finds a simple math mistake in your tax filing, you will get a “math error notice” from the agency, which includes proposed changes that could potentially alter your balance. You also have 60 days to dispute the proposed changes before they become final.
Critics argue, however, these notices don’t make it clear what errors the IRS is correcting, or the consequences of missing the deadline.
“Americans should have every opportunity to keep their hard-earned income,” Sen. Bill Cassidy, R-La., said in a statement. (1) “If the IRS thinks someone made an honest mistake filing their taxes, the IRS should be clear about how to correct it.”
What changes are being made?
In fiscal year 2024, the IRS says it sent over 1 million notices after recording over 1.2 million mistakes in 2023 tax year filings.
But according to the Taxpayer Advocate Service, an office of the IRS, some notices “don’t even specify the exact error that was corrected,” instead providing “a series of possible errors that may have been addressed.” (2)
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The office also notes, in 2021, over five million notices “were erroneously issued omitting the 60-day time period language entirely.”
Per Cassidy, under the new bill, IRS math error notices must identify the line item the IRS is changing, explain the reason for the change and specify the taxpayer’s required response date. New avenues to dispute upcoming changes, including by phone or in person, must also be created.
Why these changes matter
The new reforms protect fundamental taxpayer rights and could possibly save Americans money and stress. For example, without clear notice of the 60-day deadline, countless taxpayers may have unknowingly allowed IRS adjustments to become final simply because they didn’t realize they had a limited window to respond.
The changes could also help people limit future mistakes by helping taxpayers understand exactly which line items contained errors and how it affected calculations.
Although data on how many people receive math error notices and simply accept changes versus those who challenge them isn’t readily available, the bill’s transparency requirements may encourage more taxpayers to review notices carefully and address any mistakes.
However, it doesn’t eliminate the need for accuracy when filing tax returns. Americans should still take every precaution to file correctly — double-checking calculations, ensuring proper documentation and verifying that information matches official records.
If mistakes happen, you may be able to rest easier knowing that any errors will be easier to understand and correct promptly. The improved notices should provide clear roadmaps for resolution rather than confusing bureaucratic jargon.
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Article sources
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Bill Cassidy, U.S. Senator for Louisiana (1); Taxpayer Advocate Service (2)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.