If you receive a notice from the IRS, do not automatically assume it is correct and submit payment to make it go away. The IRS can be wrong more often than you think! These IRS letters, called correspondent audits, need to be taken seriously, but not without undergoing a solid review. Here’s what you need to do if one arrives in the mail.

• Stay calm. Don't overreact to getting a letter from the IRS. This is easier said than done, but remember that the IRS sends out millions of these correspondence audits each year. The vast majority of them correct simple oversights or common filing errors.
• Open the envelope! You would be surprised how often taxpayers are so stressed by receiving a letter from the IRS that they cannot bear to open the envelope. If you fall into this category, try to remember that the first step in making the problem go away is to open the correspondence.
• Conduct a careful review. Review the letter. Understand exactly what the IRS is explaining that needs to be changed and determine whether or not you agree with their findings.
• Respond timely. The IRS will tell you what it believes you should do and within what time frame. Ignore this information at your own risk. Delays in responses could generate penalties and additional interest payments.
• Get help. You are not alone. Getting assistance from someone who deals with this all the time makes the process go much smoother. And remember, some of these letters could be scams from someone impersonating the IRS!
• Correct the IRS error. Once you understand what the IRS is asking for, a clearly written response with copies of documentation will cure most IRS correspondence audits received in error. Often the error is due to the inability of the IRS computers to match documents it receives (for example 1099s or W-2s) to your tax return. Pointing out the information on your tax return might be all it takes to solve the problem.
• Certified mail is your friend. Any responses to the IRS should be sent via certified mail or other means that clearly show you replied to their inquiry before the IRS's deadline. This will provide proof of your timely correspondence. Lost mail can lead to delays, penalties, and additional interest tacked on to your tax bill.
• Don't assume it will go away. Until receiving definitive confirmation that the problem has been resolved, you need to assume the IRS still thinks you owe them money. If no correspondence confirming the correction is received, you should follow-up with another written confirmation request to the IRS.

Easy access to credit and new financing options are putting more consumers in new cars. Many new car owners, unfortunately, now have an expensive new car payment to go with it.

Here are a few ways that people are thinking about used cars, and how you could benefit from using the same approach.

Topic #1 – New Car Deprecation

One way of thinking: New cars may or may not hold their value in the short-term, but they can still be a good deal if you lock in a competitive price.

Alternative way of thinking: Kelly Blue Book data reveals that most new vehicles lose 20% of their value within the first year. This means buying a car that's a year old can save you 20% off the purchase price right off the bat.

Topic #2 – Auto Loan Rates

One way of thinking: Interest rates for new cars can be insanely low, so buying new instead of used could save you money in the long run.

Alternative way of thinking: Surging interest rates make auto loans expensive across the board, resulting in more people taking out smaller loan balances or using their money on used vehicles.

Topic #3 – Loan Terms

One way of thinking: Taking out an auto loan with a longer repayment period means securing a lower monthly payment that's easier to afford.

Alternative way of thinking: Short-term or no auto loan...ever. Longer repayment terms have several pitfalls, the first one being they let consumers borrow more than they probably should. Paying a lower monthly payment also means building equity at a slower rate, which can be a problem for borrowers whose loan is already underwater (owe more than their car is worth).

Topic #4 – Repairs and Upkeep

One way of thinking: Buying a new car means you won't have to pay for pricey repairs during the first few years, especially since most new cars come with a bumper-to-bumper warranty.

Alternative way of thinking: Leverage a used car warranty. Buying a used car that's still under warranty or part of a certified pre-owned program can lead to instant savings and the same protection against huge repair bills.

Topic #5 – Auto Insurance

One way of thinking. Car insurance costs whatever the market dictates, and there’s nothing I can do to save money other than shop around for rates with different insurance companies.

Alternative way of thinking. Rising costs for new and used cars means auto insurance premiums are higher now than ever before. Buying a used vehicle typically means paying lower costs for insurance coverage, and that’s on top of the savings that comes with buying used in the first place. Plus the savvy shopper knows a car totaled by insurance typically puts the owner on the hook for 20% of the replacement cost.