Read twice and referred to the Committee on Finance.
Last progress February 18, 2025 (11 months ago)
Introduced on February 18, 2025 by Elizabeth Warren
Changes how the IRS/Treasury must notify taxpayers about mathematical or clerical errors on tax returns so notices are clearer and more actionable. Notices must be mailed to the taxpayer’s last known address, written in plain language, include itemized computations, provide a phone number for automated transcripts, and clearly show the deadline to request an abatement. Treasury must adopt procedures for requesting abatements, run a pilot testing certified/registered mail with e-signature confirmation, and report pilot results to Congress. The new rules apply to notices sent more than 12 months after enactment and require Treasury to act on a short statutory timeline.
Amends the Internal Revenue Code (section 6213(b)(1)) to revise the text of the notice provisions for mathematical or clerical errors. The amendment replaces certain existing language and adds a new subparagraph requiring greater specificity in notices.
Requires each mathematical-or-clerical-error notice to be sent to the taxpayer’s last known address.
Requires the notice to describe the mathematical or clerical error in comprehensive, plain language.
Requires an itemized computation of any direct or incidental adjustments to be made to the return to correct the error, including adjustments to specified items.
Requires the notice to include the telephone number for the automated phone transcript service.
Who is affected and how:
Taxpayers (individuals and businesses): Directly benefit from clearer, itemized notices that explain adjustments and show deadlines, which should reduce confusion and make it easier to decide whether to request an abatement or otherwise respond. Improved delivery methods may reduce instances where taxpayers claim they never received notice.
Tax return preparers and tax professionals: Will be better able to review and advise clients using itemized computations in notices; may see fewer follow-up disputes if notices are clearer.
Department of the Treasury / IRS: Must develop new notice templates, update systems, and publish procedures for abatements. Treasury must run a pilot and produce a report to Congress on mailing/e-signature testing. These tasks will impose administrative and implementation costs and require coordination with mail/IT systems.
Mailing and verification service providers: Certified/registered mail and e-signature vendors could see increased demand if the pilot leads to broader adoption.
Net effects and risks:
Overall, this is an administrative reform aimed at improving tax administration and taxpayer experience rather than altering tax liabilities.
Updated 6 days ago
Last progress November 25, 2025 (2 months ago)