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 enhance the clarity and specificity of notices issued by the IRS regarding math and clerical errors on tax returns. The bill mandates that these notices include comprehensive, plain language descriptions of the errors, itemized computations of adjustments, and clear instructions on how to request abatement. It also requires the Treasury Secretary to establish procedures for taxpayers to request abatements and implement a pilot program using certified or registered mail for error notices.
Expected Effects
The likely effect of this bill is improved taxpayer understanding of IRS notices and a more streamlined process for resolving discrepancies. Taxpayers should be able to more easily understand and address errors identified by the IRS. The pilot program may also help determine the most effective methods for communicating with taxpayers about these issues.
Potential Benefits
- Improved Clarity: Taxpayers will receive clearer explanations of errors, making it easier to understand and correct them.
- Easier Abatement Process: The bill mandates clear procedures for requesting abatements, simplifying the process for taxpayers.
- Reduced Errors: By providing specific details, the bill may help taxpayers avoid similar errors in the future.
- Better Communication: The pilot program aims to improve communication methods, potentially leading to higher response rates and fewer unresolved issues.
- Transparency: Itemized computations of adjustments will provide taxpayers with a clear understanding of how their tax liability is affected.
Potential Disadvantages
- Increased Administrative Burden: The IRS may face increased administrative burdens in implementing the new requirements, potentially leading to delays in processing returns.
- Potential for Confusion: Despite the aim for clarity, some taxpayers may still find the notices confusing, especially those with complex tax situations.
- Cost of Implementation: The pilot program and new procedures will incur costs for the IRS, which could be passed on to taxpayers in other ways.
- Limited Scope: The bill only addresses math and clerical errors, leaving other types of tax disputes unaddressed.
- Delayed Implementation: The effective date is 12 months after enactment, meaning taxpayers will not see immediate benefits.
Constitutional Alignment
This bill appears to align with the general welfare clause of the Constitution, as it aims to improve the efficiency and fairness of the tax system. While the Constitution does not explicitly address tax notice specificity, the bill's provisions for clear communication and due process can be seen as consistent with constitutional principles. The bill does not appear to infringe on 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).