Cincinnati Tax Resolution - July 2021

Cincinnati Tax Resolution - July 2021

JULY 2021 VOLUME 5, ISSUE 7

TOPH’S TAX RESOLUTION T IMES

513-342-4000 WWW.513TAX.COM

I grew up in a household of good listeners. Both of my parents were patient and wanted to hear my point of view, but my mom in particular was the epitome of an impartial mediator. Her favorite method of ending a sibling argument was by sitting us down, hearing us out, and then trying to problem-solve based on both sides of the story. It worked every time. I didn’t realize back then what a valuable skill listening is. But decades later, I’m proud to have inherited it from my mom. If I couldn’t listen closely and think carefully, I know I wouldn’t be able to keep my wife and four young kids happy. I also definitely wouldn’t be able to make it in the tax resolution business! I’ve found that listening to, understanding, and empathizing with my clients’ tax situations is just as important as being a good practitioner. You could call it my secret weapon. In order to negotiate on a client’s behalf with the IRS, I have to know what their motivations are and what’s really going on behind the scenes. Surface level doesn’t cut it. For example, it’s not enough to know that someone has a tax issue because they have a gambling problem. I have to dig deeper and find out if the gambling problem has been addressed or if they’re still gambling. Then I can figure out the best way to help them. The same goes for finding out a client’s motivations. Everyone has a different reason for seeking out a tax professional. Most people don’t come to me just because the IRS is breathing down their necks. They ask for help because their tax problem is holding them back from a goal, like refinancing their mortgage, getting a divorce, putting their kids through college, or just submitting a FAFSA form. Once I know that goal, I’ll do everything I can to make it happen. Over my years of listening, I’ve discovered my clients have a few things in common. The biggest one is that no one avoids paying taxes or filing tax returns just to evade and annoy the IRS. My clients are good people, but (AND HOW I USE IT TO HELP YOU) My Secret Weapon in Negotiation

something else in their lives leads to a tax problem, like a divorce, a death in the family, substance abuse, or a medical issue. I can understand that because at one point, I was in that same boat. I ended up $50,000 in debt, not because I was trying to get in trouble, but because I made some bad decisions. Then, I took the steps I needed to change my life and get help. In a way, tax resolution professionals like me exist because the IRS isn’t very good at listening to regular people. The IRS just sees people as numbers and dollars. But I know which buzzwords to use to help them realize they’re dealing with a real person and a real story. Speaking their language is the only way to get them to listen. I’m part counselor and part mediator, just like my mom. I hope to raise my kids the same way. If someone you know is struggling with a tax problem and afraid to get help, please let them know that if they come to me, I’ll listen without judgment. We can work together to wipe the slate clean.

–Toph Sheldon

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

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The Power of an IRS Payment Plan

WHAT’S THE FUTURE OF WORK?

In-Person, Remote, or Hybrid Workplaces

After more than a year of working remotely, the initial excitement of being able to work in your sweats probably wore off long ago. But this stint of remote work has shown many upsides: Productivity has increased. Eliminating the daily commute has been good for the environment, and workers are spending more time with their families, pursuing hobbies, or exercising. Having a more flexible work schedule has also meant there’s a better work-life balance for many working parents. But for all the benefits, there are plenty of downsides, too. Many have struggled to set boundaries as the line between work and home has blurred, leading to overwork and burnout. Others complain about myriad distractions they face while working from home, especially those who don’t have a dedicated workspace and are also trying to help their children with virtual schooling. That’s not to mention potential tech issues, loneliness or alienation from coworkers, and increased barriers to effective collaboration. Yet, nearly half of those currently working remotely say they want to continue to do so 1–4 days per week even once it’s safe to fully return to the office. That’s led many employers to consider a hybrid model that incorporates remote and in-person work options. Publications like The New York Times and Forbes are touting a hybrid model as the way of the future. But what exactly would this look like? A productive hybrid work model wouldn’t simply mean workers come into the office a few set days a week. The smart approach, says Forbes writer Anna Convery-Pelletier, is to have employees come into the office for collaborative tasks and stay at home to work independently on tasks that require sustained focus and deep thinking. In-person meetings are especially good for “brainstorming sessions, introducing new projects, or team-building exercises,” Convery-Pelletier says. This focus on in-person collaboration may also mean that the office will look different when you return. Some businesses are opting to redesign their physical space to accommodate this kind of collaborative in-person work and eliminate costly individual work spaces now replicated at home. Whatever the future of work holds, many workers will be happy to safely return to their workplaces and see their coworkers in person again, whether full time or just a handful of days a month.

The client’s name and personal details have been changed to protect the identity of those involved. However, the tax results are 100% factual!

This spring, Toph worked with two clients whose stories reveal just how

powerful a payment plan can be during negotiations with the IRS. The first, Steve, was a truck driver. He was working hard just to make a living, but then he got some terrible news from the IRS: He owed $340,000 in taxes.

When Steve found Toph, the first thing Toph did was work out a payment plan for him with the IRS to keep them happy. Steve agreed to pay $100 per month while Toph and the IRS negotiated on his debt. First, Toph offered $25,000. The IRS countered that they wouldn’t accept less than $32,000. So, $32,000 it was! Steve was thrilled to settle his debt for $308,000 less than the IRS claimed he owed. Even better, participating in the payment plan had kept the IRS happy, and the low payments had allowed Steve to save up. He made a 20% deposit with his savings right away, and all of the $100 payments counted toward his $32,000 debt. Before long, Steve will be debt-free and back to living his life! Toph also leveraged the payment plan system for Jim and Joan, entrepreneurs who had been through a rough time and owed the IRS $126,000. When Toph started working with them, he offered the IRS $18,000 in the form of a $100-per-month payment plan with a balloon payment in the 24th month. The IRS accepted the payments but countered with a $55,000 total. At $55,000, the offer is still a pretty good deal on a $126,000 debt, but Jim and Joan had no way to pay that much. So, Toph filed an appeal. The appeals office saw Jim and Joan’s side of the argument! Toph was able to settle their debt for $25,000, $101,000 less than the IRS originally wanted. Because of the payment plan and length of negotiations, Jim and Joan had time to sell a few pieces of equipment and were able to write the check then and there. They walked away happy!

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Ashley’s Corner

Fourth of July and a Much-Need ‘Babymoon’

Happy almost-Fourth of July! As I’m writing this, the holiday is just around the corner and our kids are beyond excited about it. A few years ago, Toph and I took them to the Madeira Fourth of July parade for the first time, and even though it was canceled last year, they haven’t forgotten about it. They can’t wait to catch the candy from the floats, wave at the fire trucks, and watch the fireworks explode overhead. We’re lucky to live just up the hill from the park where the celebration happens, so we can probably watch most of the fun from our house, then go in person so the kids can get ice cream from the food trucks and play on the playground with their friends. Afterward, Toph and I have a special treat planned for our two oldest boys. We let Mac stay up late and watch the fireworks from the roof with us last year and he loved it. Now he and his brother Rex share a room and go to bed at the same time, so we’ve decided to let both of them watch with us. They’re pretty thrilled. They think getting the chance to crawl out on the roof is pretty cool — we don’t let them do that any other time!

The Fourth will probably be the highlight of the kids’ month, but I’m looking

forward to the following week even more. After the parade and other festivities, my mom and grandma are coming to stay with the kids so Toph and I can go on a little “babymoon” getaway. We usually

try to take a couples trip once a year to balance out our work time, family time, and couple time, but because of COVID-19, we had to skip the last one. This trip will be our first time alone together since before our youngest, Tess, was born. I can’t wait! Since I’ll be a little over six months into my pregnancy with baby No. 5, we’re calling it a “babymoon.” We haven’t firmed up our plans yet, but I have my fingers crossed for a Caribbean vacation. I hope you have something fun coming up this summer, too. You deserve it after 2020!

Take a Break

THE BEST TEXAS-STYLE SMOKED BRISKET

Impress guests at your next barbecue with this perfectly smoked brisket. Plus, you’ll have plenty of leftovers!

Ingredients

• • • • • •

Wood chips

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1/4 cup chili powder 1/4 cup garlic powder 1/4 cup onion powder

1/4 cup paprika

1/4 cup white sugar 1/4 cup ground cumin 1/4 cup cayenne pepper 1/4 cup brown sugar

1/4 cup salt

1/4 cup pepper 10 lbs brisket

Directions

1. In a bowl, soak wood chips in water overnight. 2. In a large bowl, mix paprika, white sugar, cumin, cayenne pepper, brown sugar, chili powder, garlic powder, onion powder, salt, and pepper. 3. Rub spice mixture on the brisket and refrigerate for 24 hours.

4.

Preheat smoker to 230 F. Drain wood chips and place them in the smoker.

5. Smoke brisket until it has an internal temperature of 165 F. 6. Remove brisket and wrap it in aluminum foil. 7. Smoke brisket further until it reaches an internal temperature of 185 F.

Solution on Page 4

Inspired by AllRecipes.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

Toph’s Secret Weapon in Negotiation

2

Is a Hybrid Model the Future of Work?

Toph Saves Clients Over $100,000 With IRS Payment Plans

3

Ashley’s Corner

The Best Texas-Style Smoked Brisket

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How the IRS Caught Up to Lil Wayne

TOPH’S TAX NIGHTMARES

Even Rapper Lil Wayne Can’t Run From the IRS Like most famous rappers, Lil Wayne (aka Weezy) lives a glamorous life. He owns two Considering the “Lollipop” rapper has an estimated net worth of $150 million, you’d

multimillion-dollar mansions, including a 10,000-square-foot pad in Hidden Hills, California, worth $15.4 million, and a $16.75 million home on Allison Island. (Kylie Jenner and The Weeknd are his neighbors.) His car collection is also worth a pretty penny. You’ll find a $1.8 million Bugatti Veyron, a Maybach Landaulet, and a Rolls-Royce Phantom in his garage. Yet despite those assets, his clothing line, and his famous deal with Mountain Dew, even Lil Wayne can’t escape the IRS! Back in the 2010s, the rapper skipped out on making two important tax payments. It wasn’t long before the IRS went after him. According to ET Canada, Weezy failed to pay more than $7.3 million in 2011 and over $6.8 million in 2012. In 2017, the IRS filed liens against him for a whopping $14.1 million-plus.

think paying off this debt would be no big deal. But at the time, Lil Wayne was in the middle of a messy split with his mentor, Birdman, and the Cash Money Records label. They owed him “tens of millions” according to ET Canada. So, what did the five-time Grammy Award winner do? Well, like Spiro Agnew when he was in IRS hot water, Lil Wayne turned to a musical friend. You might remember from last month’s newsletter that Agnew’s friend was Frank Sinatra. True to form, Weezy sought a bailout from his fellow famous rapper Jay-Z. “He helped me when I was really, really, really down. Really, really, really down,” Lil Wayne told fans at a concert in Chicago. “Jay don’t want me to tell nobody. That man helped me with my taxes. He’s a real friend, y’all.”

It wasn’t until March 2019 that Lil Wayne finally paid up and settled his IRS debt with Jay-Z’s help. His story just goes to show that no matter how much money you have, the IRS will always catch up with you. It’s best to turn and face the music.

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