The next time you receive an IRS notice in the mail, it may be easier to understand. That’s because the IRS has a program to redesign taxpayer notices so they are simpler. Within the next 12 to 18 months, about 60% to 70% of notices will be redesigned.
The IRS sends out about 2.3 million notices annually; they’re not all scary collection letters. Some notices provide helpful information and reminders to taxpayers. Here are some of the newly formatted notices:
Source: IR-2010-3
A credit for income taxes paid to a foreign country or U.S. possession. 401(k) plan. A deferred pay plan, authorized by Section 401(k) of the Internal Revenue Code, under which a percentage of an employee’s salary is withheld and placed in a savings account or the company’s profit-sharing plan. Income accumulates on the deferred amount until withdrawn by the employee at age 59?