My formula text field does not recognize any spacing

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I've created a formula text field to change the font color of another field (formula below).  Special Notes is the field I enter the information into and Special Notes Text is the formula field that pulls the text from the Special Notes field. 

"<span style=\"color:red\">"& [Special Notes]&"</span>"

It is working for the font color however none of the spacing, returns, etc. that I enter into the field are showing up when I view the field on a report.  Is there something I can add to my formula to keep the spacing or another formula I should be using that will do both?  Below is an example of what I'm experiencing.  Any help is appreciated!

Text Entry Field in Edit Mode

Formula Field on Report
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Matthew Neil

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Two things you might try.
(1) confirm they are both 'rich text' type fields
(2) try using a <div as opposed to a <span