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IRS Launches Simple Notice Initiative to Redesign Tax Notices

Effort aims to simplify communication with taxpayers, with redesigned notices showing promising results in pilot program.

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Overview

  • The IRS is launching the Simple Notice Initiative to simplify and redesign common tax notices, with the aim of making them more understandable for taxpayers.
  • Last year, the IRS reviewed and redesigned 31 notices, and plans to increase this number to 200 by the next filing season, covering about 90% of the total notice volume sent to individual taxpayers.
  • The redesign includes using plain language, updating the appearance of the notices, and adding step-by-step instructions and QR codes to direct taxpayers to the IRS website.
  • A pilot program involving Notice 5071C, which is sent when the IRS has questions about a taxpayer's identity, showed a 16% reduction in calls to the IRS and a 6% increase in online responses with the redesigned notice.
  • The initiative is part of the IRS's ongoing modernization efforts made possible by the Inflation Reduction Act, and will eventually expand to include business taxpayers and less common notices sent to individual taxpayers.