Got an IRS Letter? Here's What to Do

When you filed your tax return back in April, you probably figured you were done with IRS matters for the year. But if anything on your return raised a red flag, now's the time when you might receive a letter from the IRS alerting you to a potential problem.

Your first inclination upon hearing from the IRS might be to panic. But rather than stress yourself out needlessly, here's what you should do instead.

1. Read the letter carefully

Most of the time, if the IRS has a problem with your tax return, it's due to a specific issue. Maybe you transposed some numbers on your return that resulted in an error.

For example, say you received a 1099 form stating you collected $2,430 in income from a given company last year. If you accidentally reported that income as $2,340, your taxable income will be $90 shy, so the IRS might send a letter along those lines since it receives copies of all 1099 forms. In that case, all you'd need to do is agree to that change, pay whatever small tax amount it results in, and move on with your life.

IMAGE SOURCE: GETTY IMAGES.

Generally speaking, when you get a letter from the IRS, it will contain specific instructions as to what the agency is looking for or what action you need to take. As long as you take the time to understand what's being asked of you, you'll probably come to find that it's a fairly simple matter.

2. Dig up and review your tax return

Whether you filed your taxes yourself this year or with the help of a professional, you should have a copy of your return somewhere. Dig it up and review it so you know how to properly respond to the letter you received. For example, you might get a letter from the IRS suggesting an amendment to your tax return, but that's not the sort of thing you'll want to agree to before reviewing the tax forms you submitted.

3. Respond in a timely fashion

If the IRS is proposing a change to your tax return that you agree with, you generally don't need to reply unless the result is that you owe more money. If that's the case, there will typically be a portion of the letter that you'll sign and remit along with your tax payment. If you can't pay the full amount the IRS is asking for but agree that the agency is due that amount, you can request a payment plan and submit what you owe in installments.

If you don't agree with what the IRS is proposing in its letter, you'll need to respond quickly stating your case. Your response should include supporting details or documentation that defend your initial tax return.

4. Contact the IRS -- or your tax preparer -- if you need more information

Most of the time, you can tackle an IRS letter without calling the agency for further information. But if you're confused as to how to respond, you can always call the IRS directly for assistance. You may need to wait on hold for a while, but once you reach an agent, that person should be able to help.

Along these lines, if you used a tax preparer to file your return, it pays to consult that person and get advice on how to respond to your letter. Your tax preparer might even tackle that response for you, depending on the nature of the issue at hand.

Getting an IRS letter can be pretty unnerving, but there's no need to lose your cool the second you find one in your mailbox. In many cases, the issue you're looking at will be minor in nature and fixable without penalties. You might even get a notice saying you overstated your income and therefore paid more taxes than necessary.

Either way, just follow the above instructions and do what that letter tells you to do. With any luck, you'll resolve the issue quickly and go on to enjoy the rest of your summer.

A Massive Solar Energy Push Is Coming from 2 of the Last States You'd Expect

Not so long ago, solar energy was more promise than reality. Solar panels were expensive, and the savings over existing fuels did not create much of a compelling case. It took years to recoup the startup costs, and sometimes the benefit never even materialized.

But all that has changed. And as we'll show you today, this is a major catalyst for solar energy stocks…

To be sure, the environmental case was always strong and still is. Free energy from the sun was beaming down on planet Earth, and all we had to do was harness it. It also meant a reduction in greenhouse gases. And that does not even factor in the fact that oil-producing countries were getting rich at the expense of oil-consuming countries.

The promise was huge. And now, the solar energy industry is finally ready to deliver.

For starters, prices have come way down.

The Gains on This One $10 Stock Alone Could Earn You Enough to Retire – Click here now for details.

Average homeowners could find it well within their means to go solar�– with a bonus, thanks to new initiatives rapidly spreading across the country and the globe.

Indeed, some Americans are already set to receive several thousands of dollars in bonus cash for switching to solar.

Now, two states are leading the push for solar energy in particular. And you might find these two surprising…

Two Surprising States Leading the Solar Energy Charge

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Buy Cyient; target of Rs 860: Prabhudas Lilladher

Prabhudas Lilladher's research report on Cyient

Cyient delivered a weak set of performance for 1QFY19 with a tepid�� margin performance. Lower EBIDTA margins, lower other income (vs our estimates) and higher tax rate (vs our estimates) led to PAT miss our estimation by 25% for the quarter. Revenues came at USD160.8mn were down 2.3% QoQ and in line with our estimates (Ple: USD161mn). Services business revenues at USD143mn were up 0.1% QoQ in USD (1.1% QoQ growth in constant currency).� ANSEM acquisition contributed to USD1.6mn for the quarter. Hence, organic revenues of services business declined by 1% QoQ in USD and were flat in constant currency. Softness in Utilities vertical (down 12.5% QoQ and 5.5% YoY) as well as Communication vertical (down 3.5% QoQ) weighed on Services business performance for the quarter. Design Led Manufacturing (DLM) business revenues for the quarter came at USD18mn (compared to USD22mn in 4QFY18) owing to seasonality. EBIDTA margin came at 12.2% down 190bps QoQ and 60bps YoY and below our estimates (PLe:13.5%). Services business EBIDTA margin came at 13.2% for the quarter down 220bps QoQ.� DLM business EBIDTA margins stood at 4.6% for 1QFY19 down.

Outlook

We downgrade our TP by 2% to Rs 860/share (18x FY20E EPS) led by modest EPS downgrade. Retain Buy.� We have recently initiated coverage on Cyient.

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Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More First Published on Jul 13, 2018 05:21 pm

Morgan Stanley: Is Peak Auto Confirmed?

Is 2018, or was 2017, finally the “peak auto” year? That question remains up for debate, and investors have to consider what it might mean if they are invested in the auto sector. A new set of ratings from Morgan Stanley has put many of the well-established car dealership companies under a dark cloud on another strong trading day for the Dow Jones industrials and S&P 500.

While Morgan Stanley sees consolidation ahead in the auto dealer industry, this is viewed as setting up something akin to mega-fleet managers. Still, this is now nine years into the auto cycle.

We have included some trading history and the Thomson Reuters consensus analyst price target on each ahead of the new targets being issued in the Morgan Stanley report.

Asbury Automotive Group Inc. (NYSE: ABG) was raised to Equal Weight from Underweight at Morgan Stanley, which also raised the�price target to $71 from $63. Asbury shares previously closed at $72.40, but they were down 1.1% at $71.60 on Tuesday morning. The 52-week trading range is $49.10 to $76.50, and the previous consensus analyst target price was $75.86.

AutoNation Inc. (NYSE: AN) took a double-downgrade to Underweight from Overweight, and the price target also was cut to $44 from $57. AutoNation shares were at $50.48 ahead of the call, and they were down 4.4% at $48.25 in Tuesday’s late-morning session. The 52-week range is $38.59 to $62.02, and the prior consensus target price was $55.00.

CarMax Inc. (NYSE: KMX) was raised to Overweight from Underweight. After closing previously at $76.60, CarMax shares traded up 0.3% at$76.85 late Tuesday morning. The 52-week range is $57.05 to $81.67, and the consensus target price is $84.00.

Group 1 Automotive Inc. (NYSE: GPI) is now rated as Underperform, and it was trading lower after the car dealer saw its price target cut to $59 from $62 at Morgan Stanley as well. The shares were down 2.5% at $70.40 on Tuesday, in a 52-week range of $51.62 to $84.47 and with a prior consensus target price of $82.80.

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Penske Automotive Group Inc. (NYSE: PAG) was maintained as Overweight, and Morgan Stanley raised its target price to $56 from $54. Penske closed at $50.39 on Monday, and shares were down 0.7% at $50.04 on Tuesday. The 52-week range is $38.33 to $54.83, and the consensus target price is $57.57.

Sonic Automotive Inc. (NYSE: SAH) was downgraded to Underweight from Overweight, and the price target was cut to $19 from $25. The shares were at $21.70 ahead of the call and were trading down 4.6% at $20.70 Tuesday morning. The 52-week range is $15.95 to $23.60. The consensus target price was $21.83.

European stocks end higher, nabbing 5th gain in a row

European stocks finished higher Monday, posting a fifth-straight advance, with U.K. stocks getting a boost from the pound��s drop on upheaval within the British government.

U.K. Foreign Secretary Boris Johnson��s resignation raised the chance of a formal challenge to Prime Minister Theresa May.

How markets are moving

The Stoxx Europe 600 index SXXP, +0.23% �rose 0.6% to end at 384.59. The pan-European index on Friday gained 0.2%, and finished last week with a rise of 0.6%.

In London, the FTSE 100 index UKX, +0.07% was up 0.9% to close at 7,687.99. France��s CAC 40 index PX1, +0.35% added 0.4% to finish at 5,398.11, while Germany��s DAX 30 index DAX, +0.07% rose 0.4% to 12,543.89.

The euro EURUSD, -0.1193% traded at $1.1745, little changed from $1.1744 late Friday in New York. The pound GBPUSD, -0.1282% �fell roughly 0.6% to $1.3208.

A weaker pound can provide a boost to the FTSE 100 as its multinational companies generate most of their sales in foreign currencies.

What��s driving the market

European equities keyed off advances in Asian equity markets, including in China where the Shanghai Composite SHCOMP, +0.44% �shot up 2.5%. Some analysts say global stock markets were buoyed by Friday��s rally on Wall Street SPX, +0.88% DJIA, +1.31% which came after the nonfarm payrolls report showed more U.S. jobs were created in June than expected and wage inflation remained subdued.

Those U.S. stock gains came even after Washington on Friday implemented tariffs on $34 billion in Chinese imports and Beijing responded with levies on the same value of 545 U.S. goods. The moves were seen as the start of a trade war between the world��s two largest economies.

Brexit blowup

Late Friday, U.K. leader May seemed to have united her warring cabinet around a new Brexit plan after a day of wrangling at her Chequers retreat. But the Sunday night resignation of David Davis, the minister in charge of negotiating Britain��s exit from the European Union, put that new plan at risk.

Yet the pound briefly was rallying after Davis told the BBC��s ��Today�� program on Radio 4 that he was not planning a leadership challenge against the prime minister.

However, Johnson��s resignation on Monday ramped up speculation that he��s preparing to launch a leadership challenge against May.

What strategists are saying

�� ��The pound initially traded higher versus the dollar and the euro on Monday, albeit off session highs, as investors cheered the potential for a softer Brexit, �� said Fiona Cincotta, senior market analyst at City Index, in a note.

But then Johnson��s exit ��has seen the pound plummet. Whilst David Davis�� resignation was no threat to May��s leadership, Johnson��s resignation provides Conservatives with an alternative leader,�� Cincotta wrote.

�� ��So far, the U.S. has imposed tariffs on $34 billion of imports from China, as did China on U.S. imports. This stage has been clearly priced in and when looking at Asian equity performance today, investors seem unconvinced that an all-out trade war will be launched. However, given President Trump��s unpredictability, the upside momentum is likely to remain limited, particularly in cyclical stocks until we have more clarity on trade,�� said Hussein Sayed, chief market strategist at FXTM, in an note.

Stock movers

Air France-KLM SA shares AF, -2.07% �rose 6.3% following June traffic data which showed a 3.7% rise year-on-year in the number of passengers it carried, to 9.3 million.

Inmarsat PLC shares ISAT, -0.39% �leapt 7.2%, with Morgan Stanley saying that American rival EchoStar Corp. SATS, +2.07% could attempt a new takeover offer for the British satellite-communications company. EchoStar on Friday dropped its bid after Inmarsat��s rejection.

��Though there may be some disappointment in the market at the lack of an offer, when the dust settles, there has been an interested buyer at 532 pence, Echostar still has a sizeable stake in the company, and they theoretically could decide to return after six months,�� wrote Morgan Stanley analyst Terence Tsui in a note late Friday.��

Renault SA shares RNO, -0.07% fell 0.5% as its partner, Japanese auto maker Nissan Motor Co. 7201, +3.79% said Monday it��s discovered ��misconduct�� at its plants in Japan in final tests of emissions and fuel economy of its vehicles, as there were ��inspection reports based on altered measurement values.�� Nissan shares fell 4.6% in Tokyo ahead of the statement.

TGS-NOPEC Geophysical Co. shares TGS, +2.11% �leapt 5.9% after the Norwegian oilfield-data provider said it expects second-quarter 2018 net revenue of $158 million, or 47% higher than in the second quarter of 2017.

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Comment Related Topics European Markets Europe Investing Stocks European Central Bank Quote References SXXP +0.87 +0.23% UKX +5.62 +0.07% PX1 +19.03 +0.35% DAX +8.34 +0.07% EURUSD -0.0014 -0.1193% GBPUSD -0.0017 -0.1282% SHCOMP +12.52 +0.44% SPX +24.35 +0.88% DJIA +320.11 +1.31% AF -0.15 -2.07% ISAT -2.00 -0.39% SATS +0.96 +2.07% RNO -0.05 -0.07% 7201 +38.00 +3.79% TGS +6.50 +2.11% Show all references MarketWatch Partner Center Most Popular ��This rally in stocks is a last hurrah!�� warns Guggenheim��s Minerd This reliable indicator of a bear market in stocks �� and a recession �� just flashed a warning The spectacular rise and fall of MoviePass I paid for my girlfriend��s rent, food, vacations and utilities while she was in college��now we��re breaking up Bank of America raises 2018 S&P 500 earnings forecast by 4% Community Guidelines �� FAQs BACK TO TOP MarketWatch Site Index Topics Help Feedback Newsroom Roster Media Archive Premium Products Mobile Company Company Info Code of Conduct Corrections Advertising Media Kit Advertise Locally Reprints & Licensing Your Ad Choices   Dow Jones Network WSJ.com Barron's Online BigCharts Virtual Stock Exchange Financial News London WSJ.com Small Business realtor.com Mansion Global

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Head-To-Head Survey: Spok (SPOK) versus Mobil’nye Telesistemy PAO (MBT)

Spok (NASDAQ: SPOK) and Mobil’nye Telesistemy PAO (NYSE:MBT) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Volatility & Risk

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Spok has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Mobil’nye Telesistemy PAO has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Profitability

This table compares Spok and Mobil’nye Telesistemy PAO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spok	-9.05%	2.84%	2.37%
Mobil’nye Telesistemy PAO	13.76%	45.69%	9.88%

Dividends

Spok pays an annual dividend of $0.50 per share and has a dividend yield of 3.2%. Mobil’nye Telesistemy PAO pays an annual dividend of $0.70 per share and has a dividend yield of 7.5%. Mobil’nye Telesistemy PAO pays out 71.4% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Spok and Mobil’nye Telesistemy PAO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spok	0	0	0	0	N/A
Mobil’nye Telesistemy PAO	0	1	6	0	2.86

Mobil’nye Telesistemy PAO has a consensus target price of $10.75, suggesting a potential upside of 15.59%. Given Mobil’nye Telesistemy PAO’s higher possible upside, analysts clearly believe Mobil’nye Telesistemy PAO is more favorable than Spok.

Valuation & Earnings

This table compares Spok and Mobil’nye Telesistemy PAO’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spok	$171.18 million	1.79	-$15.30 million	N/A	N/A
Mobil’nye Telesistemy PAO	$6.70 billion	1.38	$958.31 million	$0.98	9.49

Mobil’nye Telesistemy PAO has higher revenue and earnings than Spok.

Institutional & Insider Ownership

83.0% of Spok shares are held by institutional investors. Comparatively, 32.3% of Mobil’nye Telesistemy PAO shares are held by institutional investors. 1.6% of Spok shares are held by company insiders. Comparatively, 1.0% of Mobil’nye Telesistemy PAO shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Mobil’nye Telesistemy PAO beats Spok on 9 of the 14 factors compared between the two stocks.

Spok Company Profile

Spok Holdings, Inc., through its subsidiary, Spok, Inc., provides various communications solutions to healthcare, government, and other enterprises in the United States, Europe, Canada, Australia, Asia, and the Middle East. The company provides one-way messaging, including numeric messaging services, which enable subscribers to receive messages comprising numbers, such as phone numbers; and alphanumeric messages, including numbers and letters that enable subscribers to receive text messages. It also offers two-way messaging services that enable subscribers to send and receive messages to and from other wireless messaging devices, such as pagers, personal digital assistants, and personal computers; and voice mail, personalized greeting, message storage and retrieval, and equipment loss and/or maintenance protection to one-way and two-way messaging subscribers. In addition, the company develops, sells, and supports enterprise-wide systems to automate, centralize, and standardize mission critical communications for contact centers, clinical alerting and notification, mobile communications, and messaging, as well as for public safety notifications. Further, it sells devices to resellers who lease or resell them to their subscribers; ancillary services, such as voicemail and equipment loss or maintenance protection, as well as provides a suite of professional services. The company serves businesses, professionals, management personnel, medical personnel, field sales personnel and service forces, members of the construction industry and construction trades, real estate brokers and developers, sales and services organizations, specialty trade organizations, manufacturing organizations, and government agencies. The company was formerly known as USA Mobility, Inc. and changed its name to Spok Holdings, Inc. in July 2014. Spok Holdings, Inc. is headquartered in Springfield, Virginia.

Mobil’nye Telesistemy PAO Company Profile

Public Joint-Stock Company Mobile TeleSystems provides telecommunication services in Russia, Ukraine, Turkmenistan, and Armenia. The company operates through three segments: Russia Convergent, Moscow Fixed Line, and Ukraine. It offers voice and data transmission, Internet access, pay TV, and various value added services through wireless and fixed lines, as well as sells equipment, accessories, and handsets. The company also provides system integration services and IT solutions. Public Joint-Stock Company Mobile TeleSystems has a partnership agreement with Nokia for joint development and deployment of Nokia's new technological solutions, as well as to promote new digital products and services of Mobile TeleSystems Group. The company was founded in 1993 and is based in Moscow, Russia. Public Joint-Stock Company Mobile TeleSystems is a subsidiary of Sistema Finance S.A.

Greenbrier Companies (GBX) Stock Rating Reaffirmed by Cowen

Cowen reaffirmed their buy rating on shares of Greenbrier Companies (NYSE:GBX) in a report published on Friday. They currently have a $58.00 price objective on the transportation company’s stock.

A number of other research firms have also recently weighed in on GBX. Zacks Investment Research cut shares of Greenbrier Companies from a buy rating to a hold rating in a research note on Monday, April 2nd. ValuEngine cut shares of Greenbrier Companies from a buy rating to a hold rating in a research note on Wednesday, May 2nd. Stifel Nicolaus dropped their target price on shares of Greenbrier Companies from $55.00 to $54.00 and set a buy rating on the stock in a research note on Sunday, April 8th. Finally, Wells Fargo & Co set a $50.00 target price on shares of Greenbrier Companies and gave the company a hold rating in a research note on Monday, April 9th. They noted that the move was a valuation call. One analyst has rated the stock with a sell rating, three have given a hold rating and six have given a buy rating to the company’s stock. The stock has an average rating of Buy and an average price target of $58.25.

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Greenbrier Companies stock opened at $54.10 on Friday. Greenbrier Companies has a fifty-two week low of $41.45 and a fifty-two week high of $54.46. The stock has a market cap of $1.51 billion, a P/E ratio of 14.39, a PEG ratio of 1.29 and a beta of 1.61. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.95 and a current ratio of 2.82.

Greenbrier Companies (NYSE:GBX) last released its quarterly earnings results on Friday, June 29th. The transportation company reported $1.30 earnings per share for the quarter, topping the consensus estimate of $1.14 by $0.16. Greenbrier Companies had a net margin of 5.92% and a return on equity of 10.89%. The business had revenue of $641.40 million for the quarter, compared to analysts’ expectations of $668.52 million. During the same period in the previous year, the company earned $1.03 earnings per share. The firm’s revenue for the quarter was up 46.0% compared to the same quarter last year. research analysts anticipate that Greenbrier Companies will post 4.3 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 9th. Investors of record on Thursday, July 19th will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.85%. The ex-dividend date is Wednesday, July 18th. Greenbrier Companies’s payout ratio is currently 26.60%.

In related news, EVP Alejandro Centurion sold 2,000 shares of the company’s stock in a transaction that occurred on Monday, April 16th. The shares were sold at an average price of $45.25, for a total transaction of $90,500.00. Following the sale, the executive vice president now directly owns 9,925 shares in the company, valued at approximately $449,106.25. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Mark J. Rittenbaum sold 2,100 shares of the company’s stock in a transaction that occurred on Thursday, May 24th. The shares were sold at an average price of $49.58, for a total transaction of $104,118.00. Following the sale, the executive vice president now owns 71,892 shares in the company, valued at $3,564,405.36. The disclosure for this sale can be found here. Insiders have sold a total of 25,100 shares of company stock worth $1,168,428 over the last 90 days. 2.46% of the stock is currently owned by corporate insiders.

A number of institutional investors have recently bought and sold shares of GBX. Ceredex Value Advisors LLC bought a new stake in Greenbrier Companies during the 1st quarter worth approximately $24,533,000. Renaissance Technologies LLC increased its holdings in Greenbrier Companies by 128.7% during the 4th quarter. Renaissance Technologies LLC now owns 626,000 shares of the transportation company’s stock worth $33,366,000 after acquiring an additional 352,301 shares during the period. Deutsche Bank AG increased its holdings in Greenbrier Companies by 137.0% during the 4th quarter. Deutsche Bank AG now owns 483,995 shares of the transportation company’s stock worth $25,795,000 after acquiring an additional 279,749 shares during the period. LSV Asset Management increased its holdings in Greenbrier Companies by 33.1% during the 1st quarter. LSV Asset Management now owns 774,027 shares of the transportation company’s stock worth $38,894,000 after acquiring an additional 192,600 shares during the period. Finally, Systematic Financial Management LP increased its holdings in Greenbrier Companies by 491.5% during the 1st quarter. Systematic Financial Management LP now owns 188,160 shares of the transportation company’s stock worth $9,455,000 after acquiring an additional 156,350 shares during the period.

Greenbrier Companies Company Profile

The Greenbrier Companies, Inc designs, manufactures, and markets railroad freight car equipment in North America and Europe. Its Manufacturing segment offers double-stack intermodal railcars; tank cars; auto-max and multi-max products for the transportation of light vehicles; conventional railcars, such as covered hopper cars, boxcars, center partition cars, bulkhead flat cars, and solid waste service flat cars; and pressurized tank cars, non-pressurized tank cars, coil cars, coal cars, gondolas, sliding wall cars, and automobile transporter cars; and marine vessels, including conventional deck barges, double-hull tank barges, railcar/deck barges, barges for aggregates, and other heavy industrial products and dump barges.