Congress Fixes IRS Math Errors

Nov 5, 2025

From Dust to Transfer

H.R. 998 – Internal Revenue Service Math and Taxpayer Help Act

A new bill to make IRS "math error" notices cleaner and more fair.

1. Legislative Status

2. Next Step: Presidential Signature

The bill now awaits the President’s signature to become law.
Given its bipartisan support and non-controversial nature, a veto is not expected, but we cannot predict exactly when POTUS will sign it into law. Once enacted, the law will take effect 12 months after the date of enactment.

3. Why It Matters: Reforming “Math Error” Notices

IRS “math error” notices are notorious for having little to do with actual math.
Instead, they often deny credits or make adjustments that raise your tax bill or reduce your refund — with no clear explanation.

The current notices usually include vague boilerplate language, leaving taxpayers confused about what the IRS changed and why. The IRS takes unilateral action to alter your return, often without detailing its reasoning or providing straightforward instructions for appeal.

Example: The Stein Family

Imagine Jonathon and Jane Stein, who welcomed baby Sam on November 1, 2024 (mazal tov!). They quickly registered Sam’s birth at the U.S. embassy in Jerusalem and applied for his SSN. They also filed an automatic extension to October 15, 2025, and the SSN was issued July 1, 2025. They filed their 2024 Form 1040 on October 1, 2025, claiming Sam for the Child Tax Credit.

But in November 2025 they received an IRS “math error” notice disallowing the credit — without explaining the issue. In practice, resolving this requires multiple calls, written memos, and months of waiting, all before even understanding why the IRS made the change. Why did the IRS make this adjustment? While the PATH Act of 2015 clearly allows for extensions to determine the timeliness of SSN issuance, IRS policy is to deny all SSN's issued after April 15 of the tax year and then leave it to the taxpayers (or their representative) to make the appropriate and necessary appeals to claim their lawful credit.

Note: this example disregards the added leniencies involved with disaster relief available to residents of Israel over the past couple of years. See Coping with the War, Coping with Taxes for full details.

For more on resolving IRS conflicts, see our guide:
IRS Conflict Resolution – How to Fix Common Tax Problems ›

4. What H.R. 998 Changes

The bill amends IRC § 6213(b)(1) to require that every math-error notice include:

  • The type of error, the specific line on the return, and the relevant code section.
  • An itemized computation showing how income, deductions, and credits were adjusted.
  • The phone number for the automated transcript service.
  • The deadline for requesting abatement, printed in bold, 14-point type next to the mailing address.
  • A pilot program for sending notices by certified or registered mail, with a required report to Congress.

5. Outlook

We expect this bill to become law within months, with implementation in 2026.
It should bring long-overdue transparency to one of the most confusing areas of IRS correspondence — a welcome development for taxpayers and practitioners alike.
The proof, of course, will be in the implementation: whether IRS systems and staff can consistently deliver the new, detailed notices.

⚖️ Disclaimer

This article is provided for general informational purposes only and should not be construed as legal, accounting, or tax advice. It might contain factual errors. Every taxpayer’s situation is unique, and laws or IRS procedures may change after publication. You should consult a qualified U.S. tax professional before taking any action based on this information. Reading this post or contacting our office does not create a client-advisor relationship.

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Many taxpayers receive identity verification notices from the IRS, and in most cases, the process is straightforward and can be resolved without much difficulty.

You have the following options to verify your identity:

Option 1: Verify through the IRS using your ID.Me account

 

Option 2: Use the IRS Document Upload Tool

    • Please note when they ask for the access code answer "no" and put in the notice/letter type 5447C

    • Alternatively, we can upload the documents on your behalf. (Please note additional fees apply.)

For both options 1 and 2:

    1. Allow at least 30 days to process.
    2. You can then check your status on IRS Where's My Refund or request that we pull your transcript.

    Option 3: Call the IRS

      1. Phone number: 1-267-941-1083

      1. When calling the IRS please note that there could be long wait times. We recommend the best time to call is as close to 1PM Israel time as possible, when the lines first open.

    When speaking with the IRS agent:

      • Let them know you are calling in response to a Letter 5447C letter for tax year 202x.

      • Provide the control number as it appears on the first page of the letter.

      • Be prepared to answer any question they ask from the first 2 pages on both tax returns, including:

          • complete address

          • filing status (Head of Household /Married Filing Separately / Married Filing Joint/ Single)

          • refund amount.

      • If you are unsure of an answer you may ask the agent where it can be found on the return.

      • Know the dates of birth for you and the children on the return

      • Know your mother's maiden name

      • If they ask about W-2 income, tell them since you live outside of the US your income isn’t reported on a W-2, but rather the equivalent form 106 instead.

    They hopefully will not ask any more financial questions.

    If your identity is successfully verified during the call, the IRS will typically inform you immediately. Your refund should then be released within approximately 6-9 weeks.

    Documents Required in All Cases

    Regardless of the verification method you choose, you will need:

      • a copy of the 5447C letter you received

      • the first 2 actual 1040 pages of your 202x and 202x tax returns

    Additional Documents for ID.me or Document Upload Verification

    If you are verifying online through ID.me or using the IRS Document Upload Tool, you will also need:

    Two clear copies of acceptable identification, as listed in the IRS letter (for example passport and license).