Cincinnati Tax Resolution - January 2021

Cincinnati Tax Resolution - January 2021

JANUARY 2021 VOLUME 5, ISSUE 1

TOPH’S TAX RESOLUTION T IMES

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The IRS Is Ready for 2021! Are You?

As 2020 came to an end, the IRS began resuming their normal operations. They had slowed down mid-2020, even suspending some of their actions. So right now, the IRS is going through past-due balances. They’re sending out letters and notices. New liens and levies are being put into place. As the 2020 tax season kicks into high gear, they are looking to collect. The good news is, they aren’t being as aggressive as they were before the pandemic, but many factors are at play that simply didn’t exist before. Chances are, the IRS won’t be back at “full force” until a vaccine rolls out. But we know the IRS would rather be at full force sooner than later. Going into 2021, they will be pursuing outstanding balances. The IRS intends to recoup some of the costs associated with the government handouts of 2020. Taxpayers will bear a lot of that burden. As you start thinking about or planning for 2021, beware. The IRS cut taxpayers a lot of slack in 2020, but in 2021, don’t expect much, if any, slack if you aren’t actively trying to get in compliance or resolve any past tax issues. If you’ve been procrastinating or taking advantage of the fact that the IRS has been more lenient in recent months, January is the best time of the year to resolve any tax issues you may have. It gives you an opportunity to start the year fresh and on the right foot with the IRS.

The reality of the situation is going to hit hard and fast. They’re going to be going after more people than ever. Over the past couple of years, the IRS has been granted additional funding to hire more staff. This has been in the works for some time, and we’re going to see the effects of this hiring this year. More staff means more collection enforcement and more audits. Anyone who isn’t prepared may find themselves in a challenging position. And while the IRS is ramping up for this year, many other changes are happening in Washington. I’ve been getting a lot of questions about how the election will influence taxes going forward. What can we expect in regard to current tax law and collections? President-elect Biden, who becomes President Biden on Jan. 20, has said he is definitely raising taxes. His focus, however, has been on those earning more than $400,000 a year. He has also said he is rescinding the Trump tax cuts, but it’s not entirely clear how that will work out, as he has also said changes to the Trump tax cuts will impact higher income earners. As the Biden administration takes shape, we’ll learn more about the specifics and how they’ll affect taxpayers, so look for more insight on this in the coming months. That said, the Biden administration still has to work with Congress in order to get things passed. With the Democrats in control of the House and the Republicans likely in control of the Senate (at least, as of this writing), we may see a slowdown to any major changes to the tax code. However, if the Democrats do gain control of the Senate, tax increases are all but assured. Again, it’s hard to tell at the moment what exactly will happen. But it’s best not to worry about what may or may not happen in the coming year and to focus on what you can control today, such as your 2020 taxes.

If you have questions about your 2020 taxes, now is a great time to ask. We’re here to help you start 2021 off on the right foot!

–Toph Sheldon

WHEN THE IRS COMES KNOCKIN’ ... LET US ANSWER THE DOOR!

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TOPH SAVES A WOMAN $123,000!

BE A BETTER LEADER 4 Leadership Books You Need to Read For leaders at all levels in all types of business, 2020 was a tough year. Those businesses that managed to not only survive but also thrive all have one big factor in common: good leadership. If you want to be a better leader for your team in 2021, here are the latest leadership books you should add to your reading list.

The clients’ names and personal details in these stories have been changed to protect the identity of those involved. However, the tax results are 100% factual! Tax Resolution Success Story No. 1: Jenny was $135,000 in debt. She had just lost her husband and job and could not afford such a large debt. So, she hired a company (not Toph!) to represent her. However, as this other company began negotiating with the IRS on Jenny’s behalf, it soon became clear that something was off. So, Jenny decided to seek out a second opinion and called Toph. Toph looked at her case and determined this other company was acting unethically. They had not been treating Jenny as she deserved to be treated. Normally, Toph doesn’t intervene in cases that are already in progress with another tax resolution company, but Jenny needed someone who was going to take the case seriously, and Toph recognized that Jenny was in a tough spot. Once Toph took over the case, he continued where the other company left off. They had made an original offer of $10,000 to the IRS. The IRS didn’t accept. Toph continued the negotiations before making a counteroffer of $12,000. The IRS accepted! While the IRS may have settled for $2,000 more than Jenny had originally hoped, it was still a huge win with a massive savings of $123,000! Needless to say, Jenny was ecstatic as the weight of the world lifted from her shoulders! Tax Resolution Success Story No. 2: Robert is the self-employed owner of a mold removal company. When Toph took on his case, Robert had not filed taxes for five years. He had an outstanding balance of $110,000. Feeling overwhelmed and knowing he needed to get current, he asked for Toph’s expertise. Toph went to work to get Robert’s tax returns filed. With those out of the way, he then turned his attention to Robert’s debt. During the negotiations with the IRS, Toph offered to settle the debt for $100. It was a lowball offer, but it gave them traction as negotiations continued. But the negotiations continued slowly. It wasn’t until a year later that the IRS responded to say they would not be settling at all . Toph wasn’t happy with that response (and neither was Robert!), so he filed an appeal. Again, the IRS took their time. Over a year and a half later, they responded. They would settle! The settlement amount? $11,000.

‘Friday Forward: Inspiration and Motivation to End Your Week Stronger Than It Started’ by Robert Glazer

Glazer is an entrepreneur and bestselling author who has taken 52 of the most impactful stories from his inspirational newsletter that goes out to more than 100,000 readers and put them in one convenient book. These stories of struggling entrepreneurs who turned things around can give you the push you need to make an impact in your own circles and end your work weeks stronger than they started. ‘Unleashed: The Unapologetic Leader’s Guide to Empowering Everyone Around You’ by Frances Frei and Anne Morriss Frei is one of the world’s foremost authorities on leadership. In her new book, she’s teamed up with Anne Morriss, a leader in the genomics industry. The book teaches leaders how to empower others. Great leadership takes grit, thick skin, and compassion, and “Unleashed” offers advice from top- performing organizations on how to best achieve all three. ‘Personality Isn’t Permanent: Break Free From Self-Limiting Beliefs and Rewrite Your Story’ by Benjamin Hardy Organizational psychologist Benjamin Hardy makes a fascinating argument for why your current personality isn’t the one that’s most important. His new book pushes readers to consider who they want their future self to be, and his ideas aren’t theoretical — they’re full of proven ways to change your priorities, break habits, and use your environment to make you a better version of yourself. ‘Honest to Greatness: How Today’s Greatest Leaders Use Brutal Honesty to Achieve Massive Success’ by Peter Kozodoy The turmoil of 2020 has pushed brands to reconsider how they appeal to their customers. Many are walking away from deceitful promises and aiming for radical honesty and authenticity, instead. In his new book, Kozodoy examines how this revolution came to be and why it’s working. His guide teaches leaders how they can embrace these qualities to make their businesses better.

Robert accepted. It was a huge saving (about $99,000!) and a burden off his shoulders. Even better, Robert is now compliant on his tax returns and his future as a taxpayer is looking very good!

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New Year, New Hire! As we planned for the new year, we decided to add another person to our team. So, late last year, we started the hiring process and I’ve been involved in all aspects. Working as a nurse, I’ve had quite a bit of experience interviewing. I’ve sat on many interview

That isn’t to say it was a negative. I got to work with a diverse set of personalities, but then again, I wasn’t spending my entire working day with just one or two people. Toph, on the other hand, will be spending his working day with the new hire, so if we can find someone who meshes well — and has top-notch qualifications — then we’re set!

committees at the hospital. Being a big business that employs a lot of people, they were always interviewing. A big part of these interviews is finding the personality fit. In our search for our newest employee, Toph and I tag-teamed it. We would interview separately and then talk about our respective interviews. Toph focused more on the business, experience, and qualifications side, and I focused more on personality and temperament.

Since Toph and I started working together in this hiring process, I’ve had a lot of fun. It’s been good to do something different and to contribute to the business. Being at home with the kids for the past several months has taken me out of an active role in the business and I’ve realized how much I miss it.

And being more involved in the business gives us more to talk about. My days were filled with diapers, school, and going to the park. Now, we get to have those conversations about hiring candidates! I’m looking forward to seeing how it turns out. By the time you read this, we may have found the newest member of Cincinnati Tax Resolution — or, we may still be looking! Stay tuned!

When you’re a small business, hiring the right people can be really hard. When I worked at the hospital, hiring was a

little easier because there was less emphasis on personality and more on qualifications. A hospital has so many roles to fill that we didn’t always have that option.

Take a Break

KOREAN BEEF RICE BOWLS

This sweet and spicy rice bowl comes together in just 30 minutes and serves four.

Ingredients

• • • • • • • •

1/4 cup low-sodium soy sauce

•

2 tbsp gochujang sauce, or more if desired

2 tsp light brown sugar

1 tsp sesame oil

• • •

3 cups cooked brown rice 1 small cucumber, sliced

1/2 tsp red pepper flakes 1 lb lean ground beef

1/2 tbsp sesame seeds, plus more for topping

1/4 cup yellow onion, chopped

2 garlic cloves, crushed 1 tsp fresh ginger, grated

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2 scallions, thinly sliced

Directions

1. In a small bowl, combine soy sauce, 2 tbsp water, brown sugar, sesame oil, and red pepper flakes. 2. Spray a deep, nonstick skillet with cooking oil and place over high heat. Add the ground beef and cook until browned. Break up the meat with a wooden spoon as it cooks. 3. Add the onion, garlic, and ginger to the meat and cook for 1 minute. 4. Pour sauce over the beef, then cover and simmer on low heat for 10 minutes. 5. Divide rice evenly into four serving bowls. Top each with scant 2/3 cup beef, cucumber slices, sesame seeds, scallions, and gochujang, to taste.

Solution on Page 4

Inspired by SkinnyTaste.com

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Cincinnati Tax Resolution Powered by Toph Sheldon 9200 Montgomery Rd., Ste. 7B Cincinnati, OH 45242

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INSIDE 1

Beware of the IRS in 2021

2

4 Books You Should Read to Lead

How Toph SAVED a Woman $123,000!

3

Our Goal for 2021: A New Team Member!

Korean Beef Rice Bowls

4

Antivirus Mogul Can’t Hide From the IRS

TOPH’S TAX NIGHTMARES

There’s No Such Thing as ‘McAfee Anti-Tax’ Software Last year, John McAfee, known for McAfee antivirus software, was arrested in Spain and is awaiting extradition to the United States where he is set to be indicted for tax evasion. While McAfee hasn’t been a part of the company that brought him wealth and success for years, he’s still had an active career speaking, consulting, and promoting cryptocurrencies. The only problem is, U.S. officials say he hasn’t been paying taxes on the money he’s earned from that speaking, consulting, or promotional work. The Securities and Exchange Commission has stated that McAfee made over $23 million as a consultant between 2017 and 2018 alone. Going into 2021, the SEC is working to permanently ban McAfee from working as “an officer or director of any listed company or any company that files reports to the SEC.”

McAfee isn’t one to shy away from controversy. After he sold the company that bears his name to Intel, he continued to make similar products within the cybersecurity industry. He has also attempted to run for president as a libertarian candidate in both 2016 and 2020. He’s also extremely vocal about taxes. In 2019, he went to Twitter to claim that he had, in fact, not filed tax returns for eight years for one reason: “Taxation is illegal.” Prosecutors on this current case say McAfee evaded taxes from 2014–2018 — just four years. To get around the taxes, he allegedly had money deposited into bank and cryptocurrency accounts that didn’t bear his name. On top of evading federal income taxes, he was also accused of concealing assets, primarily in the form of real estate and a yacht.

Gage Skidmore, Wikimedia Commons

According to the U.S. Department of Justice, if McAfee is convicted, he will face “a maximum sentence of five years in prison on each count of tax evasion and a maximum sentence of one year in prison on each count of willful failure to file a tax return. McAfee also faces a period of supervised release, restitution, and monetary penalties.” The case is ongoing.

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WHEN THE IRS COMES KNOCKIN’ ... LET US ANSWER THE DOOR!