ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Tax and Accounting

Senate-approved IRS reform addresses math, clerical error procedures

November 26, 2025
Reading Time: 2 mins read
U.S. Supreme Court settles circuit split, rules IRS may summons bank information without account holder notice

In another move to reform the Internal Revenue Service and its practices, the Senate on Monday passed the Internal Revenue Service Math and Taxpayer Help Act (H.R. 998), which requires the IRS to provide taxpayers with details on notices related to a math or clerical error as well as proposing much-needed reforms.

Other changes in the bill require that the IRS send a notice related to an abatement of taxes assessed due to a math or clerical error; provide procedures for requesting such an abatement; and that the agency implement a pilot program for sending notices of a math or clerical error.

The bill, which the House approved earlier this year, now goes to the president to be signed into law.

The bill requires that an IRS notice about a math or clerical error include:

  • A clear description of the error, including the type of error and the specific federal tax return line on which the error was made;
  • An itemized computation of adjustments required to correct the error;
  • The telephone number for the automated transcript service; and
  • The deadline for requesting an abatement of any tax assessed due to the error.

The IRS also must send a notice related to an abatement of tax assessed due to a math or clerical error that clearly describes the abatement and includes an itemized computation of adjustments to be made to the items described in the notice of the error.

This bill also requires the IRS to:

  • Provide procedures for requesting in writing, electronically, by phone, or in person an abatement of tax assessed due to a math or clerical error;
  • Implement a pilot program to send notices of a math or clerical error by certified or registered mail; and
  • Report certain information about the pilot program to Congress.

Historically, taxpayers have expressed concern that the IRS compliance and enforcement tactics have not been taxpayer-friendly. This reform requires the the IRS to clearly explain the issues, provide a fair opportunity to request abatement of simple math or clerical errors and reform practices that taxpayers found difficult to understand and remediate.

Tags: IRSTax reform
ShareTweetPin

Related Posts

CPFB report claims health savings accounts have ‘hidden costs’

IRS issues guidance on health savings account provisions in tax bill

Human Resources
December 9, 2025

The IRS released guidance on new tax benefits for health savings account participants under a tax package passed by Congress earlier this year.

Senate bill would mandate discount window testing, modernization

Learning from banks’ 2023 borrowing from the Fed

Tax and Accounting
December 4, 2025

Use of the discount window by banks reaffirms that severe stress in 2023 was limited to a handful of banks.

IRS issues guidance for ‘Trump Accounts’ for children

IRS issues guidance for ‘Trump Accounts’ for children

Financial Education
December 3, 2025

The IRS and Treasury Department have published guidance and announced plans to issue regulations for “Trump Accounts,” which are a new type of individual retirement account for children created by Congress earlier this year.

Celebrity life insurance lawsuit spotlights sales practices

Celebrity life insurance lawsuit spotlights sales practices

Wealth Management
November 26, 2025

NASCAR Champion Kyle Busch’s lawsuit against Pacific Life Insurance Company for $8.6 million in damages puts a spotlight on certain life insurance sales practices that could lead to calls for industry reform.

IRS issues memo on tax deductibility of DIF special assessment

IRS strikes funding rule from new tax on stock repurchases

Newsbytes
November 21, 2025

The IRS has removed a controversial rule in a new regulation implementing a 1% excise tax on certain types of stock repurchases after ABA and others raised concerns that the language was too broad.

State bankers associations urge Congress to help struggling farmers

IRS releases interim guidance on ACRE Act tax benefit

Ag Banking
November 20, 2025

The IRS issued interim guidance for a new tax benefit for lenders serving rural and agricultural communities, which was included in a tax package passed by Congress earlier this year.

NEWSBYTES

FDIC board adopts measures on agency budget, special assessment, bank branches

December 16, 2025

ABA expresses support for bills on flood insurance, de novo banks

December 16, 2025

64,000 jobs added in November, unemployment rate edged up to 4.6%

December 16, 2025

SPONSORED CONTENT

Seeing More Check Fraud and Scams? These Educational Online Toolkits Can Help

Seeing More Check Fraud and Scams? These Educational Online Toolkits Can Help

November 1, 2025
5 FedNow®  Service Developments You May Have Missed

5 FedNow® Service Developments You May Have Missed

October 31, 2025

Cash, Security, and Resilience in a Digital-First Economy

October 20, 2025
Rethinking Outsourcing: The Value of Tech-Enabled, Strategic Growth Partnerships

Rethinking Outsourcing: The Value of Tech-Enabled, Strategic Growth Partnerships

October 1, 2025

PODCASTS

Podcast: The 2026 outlook for bank M&A

December 11, 2025

Podcast: The outlook for tech-forward community banking

December 4, 2025

Podcast: The Erie Canal at 200

November 6, 2025

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.