This is the next installment in the Reader’s Questions Series, which highlights questions emailed to me by you, the readers of Money Q&A.

Be sure to find out at the end of this article how you can receive a free copy of Dave Ramsey’s book,The Total Money Makeover if I feature your money question on the next blog post. If you’re not familiar with Dave Ramsey’s book, you should run right out and get it. It’s one of the top ten best personal finance books you should read. 

Today’s question comes from Ben who asks about being audited by the US Internal Revenue Service (IRS).

What steps should you take after being notified that the IRS is going to audit you?

Steps To Take If You Are Audited By IRS

What To Do If You Get Audited By IRS?It can be scary to find yourself audited by IRS. What should you do? What are the first steps to take when you’re audited by the IRS? Here are the steps.

The vast majority of audits conducted by the IRS are what’s called, correspondence audits. That means the IRS sends you a letter that you must answer. Typically, the IRS asks about income from their records, 1099s, and the like that do not match what was reported to the IRS by your bank, employer, investment firm, or contractor.

Correspondence audits are low level inquiries from the IRS, and they account for 80% of the audits from the IRS to American taxpayers. But, you should take the notice seriously. You need to respond within the allotted timeframe that the IRS sets in your audit letter, and you need to respond with the information that they have requested.

But, what should you do with a full blown audit? What steps should you take with an audit by IRS?
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The two most popular warehouse clubs in the US are Costco and Sam’s Club. Each membership in the warehouse wholesale club comes with its own unique benefits and this comprehensive guide will help you decide which one is best for your shopping needs.

Which Warehouse Wholesale Club Membership Is Best?

Warehouse Wholesale Club Size and Locations

Which Wholesale Warehouse Club Membership is Best for You?In terms of warehouse size, Sam’s Club averages 176,000 square feet per warehouse, while Costco warehouses average 143,800 square feet. Both retailers sell thousands of items online as well. There are 651 Sam’s Club locations in 47 US states and Puerto Rico, though if you’re a Canadian customer then you may want to go with Costco because the only six Canadian Sam’s Club warehouses shut down in 2009.

Costco has a wider reach with 689 warehouses spread out across 43 US states and Puerto Rico (481), Mexico (36), Canada (89), the U.K. (27), Spain (2), Taiwan (12), Korea (12), Japan (23), and Australia (8).

Verdict: Sam’s Club seems to be lagging when it comes to location availability. Unless you live in a state without a Costco, your best bet for domestic and international warehouse access is with a Costco membership.

Warehouse Membership Prices

Sam’s Club wins the membership price war with their basic “Sam’s Club Savings” and “Sam’s Club Business” memberships selling for $45 annually. These memberships include buying access to Sam’s Club online and warehouse inventory items, discounts on eyeglasses, instant savings deals, free store pick-up, and potential eligibility for the Sam’s Club MasterCard.

The Sam’s Club Plus membership for $100 per year includes the basic member amenities, as well as cash-back rewards on purchases ($10 for every $500 spent, up to $500 cash-back per year), over 200 generic medications for $4 for a 30-day supply and 400 generic medications for $10 for a 30-day supply (as well as 5 free medications with a prescription), and extra service protection for several non-electronic items purchased through Sam’s Club.

Sam’s Club also offers 1-day shopping passes for non-members to check out their warehouse and website; if you decide to purchase something then there will be a 10% surcharge added to your order.

Although Costco does not offer a 1-day pass to potential members, it still offers low-priced memberships starting at $55 per year for the Business and Gold Star memberships. Unlike Sam’s Club memberships – which charge you extra for additional members added to your card – Costco lets you add one member to your card at no additional cost (it must be a spouse or immediate family member living at the same address as you, however).

Costco’s upgraded memberships, the Executive Business or Executive Gold Star, cost $110 per year and come with added benefits such as free roadside assistance for cars covered through Costco’s auto insurance program, 2% rewards on most Costco purchases, and extra discounts on Costco’s travel services.

Verdict: If membership price is the main factor you’re considering when deciding between Costco or Sam’s Club, Sam’s Club takes the cake with lower annual costs and excellent member benefits at all membership levels.
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The Pros and Cons of Using Robo Advisors to Invest

Have you been waiting to get started in investing because you think it’s confusing? Do you think that too much money is required to start, or financial advisors are too expensive? It doesn’t have to be that way. A new investment method called robo advisors has been changing the financial landscape recently. And, it’s something […]

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I’m a huge fan of Lending Club. I always have been. I’ve been using the service for years, and I’ve even appeared on Fox Business praising the investment service. I’ve grown to enjoy the Lending Club passive income that my investments in loans pays me each month, and I put that passive income back to work […]

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Is Amazon Prime Worth the Price of Membership?

Is Amazon Prime worth the cost for the annual subscription? It is currently estimated that there are 54 million Amazon Prime members in the United States, but regardless of the membership service’s popularity, is it right for you? This guide will explore the benefits of Amazon Prime and discuss potential downsides to help you decide […]

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Can You Really Make Money With Paid Online Surveys?

We’ve all seen those flashy online ads that proclaim you can make thousands of dollars in a week just by answering questions from your laptop. Clearly this is a scam, but nowadays the bogus survey companies are getting sneakier with legit-sounding promises and subtler messaging. Can you make money legitimately with paid online surveys? Not […]

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