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House Passes Several Bills to Aid Taxpayers, Increasing Transparency Into the Payment Process

The U.S. House of Representatives has passed bipartisan bill H.R. 998, known as the Internal Revenue Service Math and Taxpayer Help Act, which injects more transparency into the agency's handling of tax return errors, according to Newsweek.

Taxpayers who have received an IRS notice of a math or clerical error will have to undergo a process that critics characterize as opaque. The IRS  can adjust tax liabilities even without starting an audit while sending automated letters that usually contain insufficient details and can lead to unexpected bills or refund reductions at the expense of the taxpayers.

Supporters of the proposed legislation note that it addresses a long-standing gap in taxpayer communication, as the bill is seeking to limit confusion and unwanted financial strain while giving taxpayers the tools to comprehend and challenge changes made to their filings, Newsweek notes. 

Aside from H.R. 989, the House also passed other tax administration bills, according to Accounting Today. These include H.R. 1152, called the Electronic Filing and Payment Fairness Act. This bill applies the "mailbox rule" to electronically submitted tax returns and payments. It lets the IRS record payments and documents submitted to the agency electronically on the day the payments or documents are submitted as opposed to when they are received or reviewed at a later date.

The House also passed H.R. 517, known as the Filing Relief for Natural Disasters Act. The process of receiving IRS tax relief after a natural disaster usually must come after a federal disaster declaration, which usually happens weeks after a state disaster declaration. The bill grants IRS the authority to give tax relief as soon as a state's governor declares either a disaster or a state of emergency. It also expands the mandatory federal filing extension from 60 days to 120 days. This would offer taxpayers added time to file tax returns after a natural disaster occurs.

Another bill passed is the H.R. 1491, named the Disaster related Extension of Deadlines Act. This extends the amount of time disaster victims would have to file for a tax refund or credit—the lookback period—by the amount of time given to a disaster relief postponement period for taxpayers  impacted by major disasters.

Other bills passed include the H.R. 1155, known as the Recovery of Stolen Checks Act, which would require the IRS to create a process for taxpayers to request a replacement via direct deposit for a stolen paper check and H.R. 997, called the National Taxpayer Advocate Enhancement Act, which would stop IRS interference with National Taxpayer Advocate (NTA) personnel by giving the NTA responsibility for its attorneys.