Southern Elite Team

You go to the mail box and find that you have a letter from the IRS. Usually, the notice covers a very specific issue about your tax return. Sometimes it is serious—but most of the time it’s no big deal. But just in case one does show up, here are some of the things you should know.
Don’t panic. It may just be a simple explanation.
Each letter is very specific as to what you need to do to answer the inquiry.
If the notice is about a “correction” on your tax return, compare it with the numbers on your return.
If you agree, nothing further needs to be done. It was just a notice that the IRS changed something.
If you do not agree, it is important that you respond to the request within the time period outlined in the IRS letter.
If you do not agree, respond in writing why you disagree. Tear off the bottom portion of the letter and return it, along with any relevant documents or information.
Keep copies of everything you sent to them.
Mail to the address the IRS provides in the letter.
Allow 30-45 days for a reply.
Most issues should be handled in writing. However, if you have a question, use the phone number provided in the upper right-hand corner of the letter.
If you’d like to know from year to year what the recent tax changes will be, visit IRS.gov, click on the “News Tool Bar” and then select “e-news Subscriptions.”

Here’s how you tell if you have too much “stuff”…
You cannot fit one more piece of clothing in your closet.
The rooms in your home have so much furniture that it’s difficult to walk around.
Your cabinets are so jam-packed with food, dishes, pots and pans that you have to remove items to get to the one thing you want to use.
I wanted to share with you four things you could do to declutter and make your life a bit simpler:
1. Sell your stuff: Make up a list of local consignment stores or estate sales dealers who would sell your items at a fair price—after commission. Or you could sell them online. Facebook and Craigslist usually have a local online consignment page where you can post photos. Since it’s local, you don’t have to pay for shipping. eBay is another option but there is a hassle of shipping the items you have sold on that website.
2. Donate your stuff: The local Goodwill or Salvation Army come to mind—but there are other places you may want to consider. Halfway homes. Abused women shelters. Senior citizen homes. Be sure to check what they will and will not accept.
3. Throw away your stuff: While some of your stuff my be too bulky to take to the dump, there are services that will haul away your items—like 1-800-GOT JUNK. Another way is to move the large items to the curb with a sign that says “FREE: TAKE ME PLEASE”. If you have stuff like chemicals or paint, check with the local recycling center to see what they will take. One more thing, most communities have a “used appliance pickup day” once a year where they will remove your stuff from the curb.
4. Store your stuff: If you simply can’t part with the items and think you can use it again sometime in the future, consider placing it in a self-storage unit. It could also be items that you only use periodically and it’s best to store them off site. However, the danger is that if you store the stuff and find you never visit the storage unit, you are postponing the inevitable—so you may as well get rid of it.

Did you know that if you claim an “Earned Income Credit” or an “Additional Child Tax Credit,” the IRS can delay your refund?
The delay was created to combat tax-refund fraud. So, your refund is delayed until they check you out!
That’s one of the reasons that tax preparation companies offer tax-refund advances – so you don’t have to wait weeks or months to get your refund.
But here’s the thing. It’s not an “advance”. It’s a loan from a bank, and they have the right to check your credit, report the loan on your credit report, and it could possible reduce your credit score.
And, if you read the fine print, your “loan” is subject to underwriting requirements—which means that even if you apply for the tax-refund advance, there is no guarantee that you’ll be approved.
The interest rate is usually zero. However, you will be charged a “processing fee” – usually $40 to $60 – for the privilege of getting your refund in advance. And there is usually a limit to the amount the tax prep company will advance. For example, if you are expecting a refund of $4,500, they may only advance $2,000. When the refund is received, the $2,000 will be deducted.
By the way, according to H&R Block, the tax-refund approval rate is 75%.
If you take the standard deductions—don’t pay for someone to prepare your taxes!
If you can wait a few more weeks—don’t take the tax-refund advance!