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
The amount of gain reportable and subject to tax. On certain tax-free exchanges of property, gain is not recognized in the year it is realized.