January 15, 2010 12:00 am

Simplified IRS Notices

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.

Taxpayer-Friendly Notices

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:

  • Additional child tax credit-suggesting that the notice recipient may be eligible for this tax credit and what to do to claim it.
  • Undelivered tax refund-notice that the check has been returned to the IRS and what to do to have it re-sent to the proper address.
  • Direct deposit failure-notice that a tax refund that was supposed to be deposited directly into a taxpayer’s account was not accepted. The tax refund will instead be sent by mail; the taxpayer does not need to do anything.

Source: IR-2010-3

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Tax Glossary

Assignment

The legal transfer of property, rights, or interest to another person called an assignee. You cannot avoid tax on income by assigning the income to another person.

More terms