Details of Public Law 119-39, section 2 , Internal Revenue Service Math and Taxpayer Help Act

This provision requires additional information on the notice that taxpayers receive when a mathematical or clerical error occurs on their tax return. The notice would be required to be sent to the taxpayer’s last known address, and includes the following:

a plain language explanation of the mathematical or clerical error,

an itemized mathematical computation of direct or incidental adjustments made on the return in correction of the error,

contact information for the automated phone transcript service, and

the date the taxpayer can request an abatement for the assessment.

This provision requires additional information to be provided if the taxpayer requests an abatement within 60 days and if the Secretary of the Treasury determines the adjustment can be abated, the notice of abatement must include the following:

Be sent to the taxpayer’s last known address,

Describe the abatement in comprehensive, plain language, and

Provide an itemized mathematical computation of adjustments made to items in the mathematical or clerical error notice.

The provision also requires the Secretary of the Treasury, in consultation with the National Taxpayer Advocate, to implement a pilot program to send a trial number of notices of mathematical or clerical error by certified or registered mail with e-signature confirmation of receipt. It also requires a report to Congress on the type of error to which the notices relate on the number of math or clerical errors noticed, the dollar amounts, the number of abatements, and the effect of the pilot program on taxpayer response and adjustments to abatements to tax.

California does not conform to IRC section 6213 but instead has a standalone law for notices and assessments related to math errors. The FTB issues a Notice of Tax Return Change (NTRC) when an error is identified on a taxpayer’s tax return. The NTRC will contain information, such as:

The change made to the return,

Any action the taxpayer may take whether they agree or disagree with the correction,

A plain language explanation of the change, which may include taxpayer’s calculation and the FTB’s calculation,

How to contact the FTB.

California does not conform to the changes made by this provision.