When a taxpayer sells their home, they may not have to pay taxes on the money they gain. If the gain on the sale of a home is not taxable, it may not need to be reported to the IRS. There are several factors to consider to determine eligibility for an exclusion. One factor is the length of time someone has lived in their home. If someone has lived in their home and used it as their main residence for 2 of the previous 5 years, they may be able to exclude some or all of the gain from the
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IRS Tax Tip 2025-33, May 27, 2025 The IRS sends notices and letters when it needs to ask a question about a taxpayer’s federal tax return, let them know about a change to their account or request a payment. When a taxpayer receives mail from the IRS, they should: Read the letter carefully. Most IRS letters and notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes any steps the taxpayer needs to take. A notice may reference changes to a taxpayer’s account, taxes owed, a payment request or a specific issue
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