A newly introduced bipartisan bill seeks to force the Internal Revenue Service (IRS) to make its clerical and math error notices sent to taxpayers easier to understand so that filers can potentially avoid refund reductions.
When a tax return is found to have some simple errors, the IRS has the authority to correct them. Once corrections are made, the agency sends error notices. If a taxpayer feels the error correction done by the IRS has to be reversed, they must contact the agency. If the taxpayer fails to respond within 60 days, they forfeit their right to challenge the IRS’s correction and the agency moves forward with the return. The IRS error correction can result in refunds getting reduced, thus harming taxpayers.
