Tax Prep & Planning

What Does The IRS Do When You Have a Tax Return Error?

The IRS issued approximately two million math error notices each year between 2015 and 2017, according to the IRS. Depending on the type, an error might impact the size of your refund.

This begs the question:

“Can the IRS correct your refund amount?”

In short, yes. Let’s dig into details.

Correcting a Math Error

Believe it or not, math errors are more common than you think. If the IRS fixes a math error on your tax return, it will send you a notice indicating what was corrected and how it impacts your tax return and your refund.

Depending on the size of your error, it could change the size of your refund, or result in a tax liability when you were expecting a refund.

Disagreeing with a Math Error Notice

If you disagree with the notice and the change results in you owing more taxes than originally calculated, you can request an abatement within 60 days of the notice.

Appealing a Math Error Notice

If the IRS sends a math error and you disagree, you will need to send additional information with your abatement request to show the IRS why the error proposal is incorrect. If the IRS agrees, it will reverse the math error. If the IRS doesn’t agree, it will continue to examine your return.

Taxpayer Rights

Your interpretation of tax law and the IRS’ might be different. While you weren’t trying to cheat on your taxes, if the IRS finds that you misstated your tax liability that could lead to further action. Keep in mind the Taxpayer Bill of Rights.

If you are faced with an IRS notice or question, leave it up to the experts. Make an appointment with a tax professional at Block Advisors. We are on call year-round to help guide you. Find an advisor now.

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