Thursday, August 25, 2011
Most (98.4%) of the approximately 8.6 million math error notices were agreed to by the taxpayer. However, our review identified that some responses in which taxpayers disagreed with the math error notices were not worked timely or accurately.
Our review of 260 taxpayer responses worked by the IRS between January 1 and July 23, 2010, showed 104 of the 260 responses were not worked timely. TIGTA estimated that 12,232 taxpayer responses may not have been timely resolved during the period January 1 to July 23, 2010.
In addition, TIGTA found that 43 of the 260 responses reviewed were not worked accurately. TIGTA estimated that 17,627 taxpayers may not have had their responses resolved accurately during the period January 1 to July 23, 2010. In addition, TIGTA estimates inaccuracies could result in approximately $39.5 million in lost revenue to the Federal Government and approximately $29.2 million in tax benefits that taxpayers will not receive over the next five years.