Amends the Internal Revenue Code of 1986 to enhance the clarity and specificity of math and clerical error notices sent to taxpayers.
Requires notices to be sent to the taxpayer’s last known address and to describe the error in plain language, including:
Type of error
Relevant section of the tax code
Nature of the error
Specific line on the return where the error occurred
Mandates an itemized computation of adjustments related to the error, covering various tax-related items such as adjusted gross income, taxable income, deductions, credits, and tax payments.
Requires inclusion of the automated phone transcript service number in the notice.
Specifies that the deadline for requesting an abatement must be prominently displayed in bold font on the notice.
Prohibits notices from listing multiple potential errors; all specific errors must be listed if applicable.
Establishes a requirement for the Secretary of the Treasury to send a notice of abatement to the taxpayer, detailing the abatement in plain language and providing an itemized computation of adjustments.
Sets an effective date for the amendments to apply to notices sent 12 months after enactment.
Directs the Secretary of the Treasury to create procedures for taxpayers to request an abatement through various methods within 180 days of enactment.
Initiates a pilot program within 18 months of enactment to send a statistically significant number of error notices via certified or registered mail with e-signature confirmation.
Requires a report to Congress on the pilot program’s outcomes, including the number of errors noticed, abatements, and taxpayer responses, along with recommendations for improving response rates.