Tax return errors aren’t new, but the number of automatic corrections made by the IRS has skyrocketed in recent years. Why is this happening? A big part comes from new tax laws and relief programs that have complicated tax filings. Let’s break it down in simple terms.
More IRS Notices for Math and Clerical Errors
The IRS has the authority to correct certain tax return mistakes without a full audit. But recently, the number of notices alerting taxpayers about these corrections has surged. This spike was especially noticeable after government relief programs were introduced to support individuals and businesses. These programs, while helpful, also added complexity to tax filings, leading to more errors.
There are two main reasons for this increase:
A higher number of notices were issued to taxpayers for math and clerical errors.
The IRS’s expanded authority to identify and fix these errors automatically.
During the peak years of pandemic relief programs, millions of taxpayers claimed credits and rebates. However, the eligibility rules were complex, and even small mistakes—like entering an incorrect Social Security number or miscalculating a credit—triggered IRS adjustments.
Common Errors That Lead to IRS Adjustments
Some of the most frequent mistakes include:
Basic miscalculations (addition, subtraction, etc.).
Inconsistent information between tax forms and supporting documents.
Missing required paperwork for tax credits.
Incorrect taxpayer identification numbers (TINs) for yourself or dependents.
Many of these errors involve tax credits such as the Child Tax Credit, Earned Income Tax Credit, and recovery rebate payments from relief programs. Even a simple typo in one of these areas can cause an automatic correction by the IRS.
What Happens If You Get an IRS Math Error Notice?
If the IRS finds a mistake in your return, they will send a letter explaining the adjustment. Ideally, this notice should clearly state the issue and the correction made. However, many taxpayers find these letters vague or difficult to understand, making it unclear what went wrong or how to fix it.
Here’s the important part: You have 60 days to respond if you disagree with the adjustment. If you do nothing, the correction becomes final, which could mean owing more in taxes than you should.
Can This Process Be Improved?
The Taxpayer Advocate has proposed several changes to make things easier for taxpayers:
The IRS should provide clearer explanations of errors, including specific details about where the mistake occurred on the tax return.
Only Congress—not the IRS—should have the authority to expand the list of tax return errors that can be corrected automatically.
Taxpayers living outside the U.S. should have more time to respond to error notices (increasing the current 60-day limit).
If these changes are adopted, taxpayers will have a better chance of understanding and fixing issues without unnecessary stress.
What Should You Do If You Receive a Notice?
If you get a letter from the IRS about a tax return adjustment:
Read it carefully. Identify what error is being corrected and what changes were made.
Compare it with your original return. Double-check whether the IRS correction is accurate.
If you disagree, respond within 60 days. You can request that the correction be reversed and provide supporting documents.
Consult a tax professional. A CPA or tax advisor can help you interpret the notice and decide on the best course of action.
Final Thoughts
IRS math error notices are becoming more common, and while they’re meant to keep tax filings accurate, they can sometimes cause confusion and unnecessary stress. The key is to review any IRS notice carefully and act quickly if something doesn’t seem right.
If you’re unsure about a tax adjustment or want to avoid errors in the first place, our team of experienced CPAs is here to help. Reach out to us today for expert guidance and peace of mind during tax season!
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