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TAXES
Savvy strategies to help reduce your taxes
Charitable Miles
Donating your unused frequent-flier miles to charitable organizations is a good thing. But it’s not a tax-deductible thing. The IRS says that reward miles have no monetary value, so donating them to charity doesn’t give you a tax write off. But those miles still have value to charities. If you want to donate yours, go to www.miledonor.com. The site lets you pick a charity and then links you to the procedure for making the donation.
IRS Notices
If you receive a letter from the IRS, don’t panic. Each year, the IRS sends millions of letters and notices to taxpayers to request payment of taxes, notify them of a change to their account or request additional information. The notices normally cover a specific issue about your account or tax return. Each letter gives specific instructions and a phone number to call to ask questions.
Review the correspondence and compare it with the information on your return. If you agree with the correction to your account, no reply is necessary unless a payment is due. In that case, send in the payment. If you disagree with the correction the IRS made, it’s important to respond. Write a letter explaining why you disagree. Include any documents and information you want the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response. Be sure to keep copies of all correspondence.
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