WASHINGTON — President Donald Trump has signed the IRS Math and Taxpayer Health Act, legislation by U.S. Sen. Bill Cassidy that requires the Internal Revenue Service to provide clearer explanations when correcting mathematical or clerical errors on tax returns.
“President Trump and I want Americans who play by the rules to keep their hard-earned income,” Cassidy said. “An honest mistake on a tax return should be met with clear guidance from the IRS, not confusion. I appreciate President Trump’s partnership in making this a priority.”
The IRS is permitted to issue automatic “math error” adjustments when returns include simple miscalculations or clerical mistakes. These corrections are processed without the typical pre-assessment notice period, and taxpayers have 60 days to contest the adjustment. If they do not respond, the change becomes final and collection processes can begin.
Millions of taxpayers receive these notices each year, but lawmakers and tax advocates have long raised concerns that the notices lack specificity and do not clearly communicate deadlines or taxpayer rights. Notices often list multiple possible errors instead of identifying the exact issue, increasing the risk of compounding mistakes in future filings.
The new law requires the IRS to precisely identify the line item being changed, provide the reason for the adjustment and clearly state the response deadline. It also directs the IRS to notify taxpayers of abatement determinations when disagreements arise and instructs the Treasury Department to create additional procedures for requesting abatements, including options to initiate them by phone or in person.
The legislation establishes a pilot program with the IRS and the National Taxpayer Advocate to evaluate the impact of sending math or clerical error notices by certified or registered mail.
Cassidy previously commended the Senate’s passage of the bill in October, framing the measure as an effort to reduce taxpayer confusion following the 2024 filing season.