The Internal Revenue Service (IRS) Math and Taxpayer Help Act was signed into law by President Donald Trump on Dec. 1, 2025, and will provide taxpayers with additional information and clarity when math errors are identified in their returns.
Errors in tax returns are common. Each year, several million taxpayers are notified by the IRS of mistakes in their returns. Identified through automated means, these errors are not usually tax fraud, but the IRS diverts the return to address the error(s). Errors might be information that is missing or a literal math error in addition, division, disallowed tax credits and the like. Errors also occur when figures are provided that are inconsistent with statements or entered on the wrong forms.
While the IRS sends error notices to taxpayers whose returns have been deferred due to an error, the notices can sometimes be unclear and may not spell out taxpayer rights in the event of an assessment due to a math error. These rights include a 60-day window of opportunity during which a taxpayer can challenge a new assessment.
How does the new act help taxpayers?
When the Math and Taxpayer Help Act goes into effect on Dec, 1, 2026, the act will clarify the responsibilities of the IRS when notifying a taxpayer of a math or clerical error. The act outlines specific information that must be provided to a taxpayer and the taxpayer's rights to challenge the error, including the following:
- The act requires the IRS provide details of the error, including the line of the return where the error is located. The notice must provide a calculation of how the error will be corrected as well as contact information and the process by which a taxpayer can challenge or respond to a notice for additional taxes assessed by the IRS because of the error.
- The act also requires the IRS to implement a pilot program for sending error notices by certified or registered mail.
- The IRS will be required to report to Congress on the results of the pilot program.
According to the National Taxpayer Advocate, which pushed for this change in the law, the act provides greater due process protections for taxpayers and improved clarity in IRS and taxpayer procedures for handling or challenging the errors. Overall, the act improves important communication and service to taxpayers.
Minor errors on returns can be frustrating, but if the IRS alerts you to an error of serious magnitude and financial importance, such as one involving an offshore tax investment or Report of Foreign Bank and Financial Accounts (FBAR) filing, consider speaking with a tax attorney to clarify your understanding and options before contacting the IRS.
Looking for experienced legal advice on tax compliance related to your personal or corporate tax return? We can help
If you receive a worrisome notice of deficiency or IRS audit letter, speak with tax group. At Robert J. Fedor, Esq., L.L.C., we provide experienced legal counsel on options to help you navigate IRS interest in your return or business dealings. Contact our legal team today at 440-250-9709. We serve clients. internationally and Northeast Ohio, Chicago, and New York City from our offices in Cleveland and Chicago.
For additional background on criminal tax fraud, the firm has prepared an educational resource outlining common tax crime scenarios and compliance considerations.
