Cincinnati Tax Resolution - February 2022

Cincinnati Tax Resolution - February 2022

FEBRUARY 2022 VOLUME 6, ISSUE 2

TOPH’S TAX RESOLUTION T IMES

513-342-4000 WWW.513TAX.COM

Success! I Reduced $70,000 of Debt to Just $100

IT’S ALMOST TOO GOOD TO BE TRUE

Okay, hear me out — this story sounds too good to be true, but it really did happen.

This was probably the most important moment of my client’s case, and he did the right thing by calling me for help. I always advise my clients not to make big financial changes while they’re negotiating with the IRS. But this client had a business and a daughter. He needed a car badly. I knew that the IRS would go crazy over this big purchase, so I walked him through the right way to do it: Don’t borrow money from family. Don’t pay in cash. Do take out a reasonable loan and set up a payment plan. He followed my instructions step by step. All of his i’s were dotted and his t’s were crossed. When the IRS finally got back to us and started asking questions about the car, we were ready! I handed over all of the paperwork with full confidence that everything was above board. What happened next was … unexpected. I assumed that the IRS would finally come back to me with a counter offer, but instead, the agent went completely off the rails trying to prove that because my client was making car payments, he had money hidden somewhere. But that “extra income” didn’t exist, and I knew it! I had to intervene. My client was being treated so unfairly that I escalated the issue to the manager level. “The examiner on this case has overstepped their bounds,” I told the IRS manager. “We need someone else to step in.” The response was radio silence, but I was confident. After 30 days, I called for an update. Nothing! Thirty more days went by. Then, the IRS finally picked up.

Over a year ago, a client came to me with a mountain of tax debt. He was a self-employed contractor and owed the IRS $70,000. He didn’t have any assets — not even bank accounts! He was living paycheck to paycheck, struggling to pay for things like heating and food, and the IRS was still knocking at his door. After looking through this client’s finances, I could see this client had no prospect of paying the IRS back in full. My goal was to get him the lowest possible settlement. So, as soon as we got his estimated taxes into compliance (a necessary step to get him on the IRS’s good side), I opened negotiations at a really low amount.

“Good news,” they told me. “We’re in the process of accepting your original offer.”

I could hardly believe it! After all that runaround, the IRS agreed to settle my client’s $70,000 tax debt for just $100. It was the happy ending he and his family needed. As I write this, they’re finally moving on and putting the whole ordeal behind them. If you or someone you know is dreading Tax Day right now, remember that successes like this exist. Your tax situation isn’t hopeless. With a resolutions specialist like me who knows whom to call and which IRS buttons to push for results, you can resolve your debt. Give me a call before you file your 2021 tax return, and I’ll help you get started. P.S. Not sure how to file while you’re in tax trouble? Turn to Page 2 for my tips. –Toph Sheldon

“If you or someone you know is dreading Tax Day right now, remember that successes like this exist. Your tax situation isn’t hopeless.”

Paying $2,000–$3,000 per quarter in estimated tax squeezed my client’s budget even tighter, so I offered the IRS just $100 to settle his $70,000 tax debt. I hoped they’d come back with a counter offer, but months went by in silence. Then, my client’s car died.

He called me immediately. “Toph,” he said, “I really need a new car. What should I do?”

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

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FEEL CONFIDENT IN BUSINESS!

3 Steps to Identify Your Value

We’ve all been taught that bragging is annoying, but when you’re afraid to identify your worth, it can really hurt your confidence and success in business. To prevent that from happening, here are three tips to make it easy to name your price! No. 1: Get to know your value. How do we figure out our value? Specifically, how do we come up with a quantifiable method to reach an exact, irrefutable number? Well, we don’t. The best place to start is deciding who you want to be in your business and industry and building from there. With a solid mission statement and concrete affirmations that support your value in the business, you’ll gain more confidence in arriving at a price point.

Tax Day is almost upon us, and if you’re dealing with tax debt, you probably have a lot of questions bouncing around in your head. Below, I’ve done my best to answer a few of them. SHOULD YOU FILE IF YOU CAN’T PAY? Your Tax Questions, Answered

No. 2: Be open to receiving — and giving — love. Accepting compliments can be tough, but in business,

“Should I file my 2021 tax return if I can’t pay what I owe?”

compliments can be powerful catapults to your continued success. When you take time to notice all the people you’ve helped, the accomplishments you’ve achieved, and the difference you’ve made, the motivation it fosters is monumental. Keep your happy emails, texts, and reviews from clients and create an easy reference for instant, uplifting support. If a client seems happy, never be afraid to ask for a testimonial. Many people simply need to be asked, and they’ll be happy to provide one. In the same stride, consider the people who help you and your business every day and find ways to show appreciation. Passing that love around can make a huge difference in energizing the way you perceive your value. No. 3: Make the final game plan. After considering what your offerings are likely worth, whom you’re looking to serve, and what they’d be willing to pay, you can name your final price. After all, prices don’t fall from the sky. Without obsessing over it, look at what kind of value your competitors have set for themselves. That’ll give you a great starting point. Take good care of yourself, friends — and don’t forget that a confident price tag is a great way to do just that in your business.

The answer to the question “Should I file?” is always “Yes.” Purposefully not filing your tax return is a federal crime. That said, you can strategically choose how you file to suit your current financial situation.

“Should I file my tax return online or through the mail?”

Most people file their taxes electronically these days, but depending on your tax situation, it could be beneficial for you to mail in your tax return instead. Why? Well, the IRS gets a lot of mail, so mailing in your return will slow down their collection cycle. Mail sent to the IRS often sits in their mailroom for 4–6 months before it’s opened and processed. That said, mailing in your return will not eliminate penalties and interest. You’ll still owe those, because even though you technically filed on time, you still did not pay on time. If your goal is to mitigate penalties and interest, you’re better off filing electronically and dealing with the IRS right away rather than kicking the can down the road.

“Should I file an extension?”

Like the previous question, the answer to this depends on your goal. If you want to negotiate with the IRS and resolve your tax trouble as fast as possible while avoiding penalties and interest, an extension may not be for you. But if you want to delay filing in order to gather more money to pay your debt, you may want to file one. If you mail in your tax return and file an extension, you could generate up to a year of additional time to get your finances in order. This guide is a good starting point, but if you really want to file your 2021 return the right way, you should call me today. I can give you advice tailored to your exact situation and set you up for success with the IRS. The sooner we connect, the better!

–Toph Sheldon

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ASHLEY’S CORNER The Case of the Disappearing Dishes

A few weeks ago, I came downstairs in the morning and found a surprise: The kitchen was spotless! Usually, I leave our dishes from dinner in the sink and take care of them the next day while I make breakfast for the kids. But on this particular morning, Toph had sneaked into the

after dinner, or having the kids pick up the basement. (Since he works and I stay home, I usually take care of those chores.) Little things like that are even better than flowers or a card on Valentine’s Day! These days, Valentine’s Day tends to be more about the kids than it is about us. We get sucked into all of their projects, like making Valentine’s Day cards for school, writing their names on all of them, and picking out candy to match. After all of that, going out to dinner just seems like too much effort for the two of us. We still squeeze in our alone time, though. Instead of going big on Valentine’s Day, we try to plan a date night on or near the 8th of every month. We met on Jan. 8 and got married on June 8, so it’s a special number for us. If we can find a sitter, we’ll probably skip the Valentine’s Day crowds this year and treat ourselves to a Feb. 8 dinner out instead. Maybe on Feb. 14, Toph will surprise me again and do the dishes (hint, hint).

kitchen the night before, after I went to bed. He ran the dishwasher, wiped down the counters, and put everything away neatly in the cupboards. It was a glorious sight! That effort made my morning, especially because I know Toph hates dishes even more than laundry or bathroom cleaning. It meant a lot to know that he pushed through and scraped the dirty plates anyway, just because it would make me smile. Little moments like those remind me of why I fell in love with Toph in the first place. He’s smart and ambitious, of course, but he’s also considerate. Every once in a while, he’ll surprise me by doing the dishes, cleaning up

Happy Valentine’s Day!

Take a Break

CHOCOLATE PECAN FONDUE

This Valentine’s Day, forget the entree! Surprise your honey with a delicious chocolate treat!

Ingredients

• • •

1/2 cup half-and-half cream

• • • •

1 tsp vanilla extract

2 tbsp honey

Fresh fruit of your choice

9 oz semisweet chocolate, broken into pieces 1/4 cup pecans, finely chopped

Shortbread cookies Large marshmallows

•

Directions

1. In a sturdy saucepan over low heat, combine cream and honey. Stir until mixed thoroughly and heat until warm. 2. Add in chocolate, stirring until melted. 3. Stir in pecans and vanilla.

Solution on Page 4

4. Transfer to a fondue pot or a slow cooker to keep warm. 5. Serve with fruit, cookies, and marshmallows of your choice.

Inspired by TasteOfHome.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 Saves a Client $69,900

2

3 Steps to Identify Your Business Value

Your Guide to Smart Filing

3

Ashley’s Corner: Love at First Clean

Chocolate Pecan Fondue

4

The Mafia Don vs. The Tax Man

THE IRS HELPS NAB A GANGSTER

Inside the Curious Case of ‘The Teflon Don’

reference to his flashy clothes, and the former to the fact that charges of murder, racketeering, and more “wouldn’t stick.” Among other incidents, Gotti was suspected of murdering his neighbor in revenge after the man accidentally killed his son in a motorcycle accident. Even when Gotti was briefly behind bars for manslaughter in the ‘70s, prison was practically a vacation for him. According to the Encyclopedia Britannica, thanks to a few well-placed bribes he “was allowed to leave the Green Haven Correctional Facility in upstate New York to meet with other mobsters at New York City restaurants and even to visit his home in the Howard Beach section of Queens.” That all changed when the IRS discovered Gotti had skipped out on filing five years of tax returns (1984–1989). When they brought him in, the prosecutors went to work. In 1992, they put Gotti away for life on criminal counts including tax evasion, murder, conspiracy, racketeering, and obstruction of justice. It’s rare that you’ll hear us cheer on the IRS, but in this case, they earned a round of applause! Unlike 99.9% of people with tax problems, Gotti was a criminal who deserved what he got.

Everyone knows that the IRS helped bring down Al Capone, but he wasn’t the only mob boss they hooked when murder charges just wouldn’t stick. In 1992, the agency also helped put the infamous mob boss John “The Teflon Don” Gotti behind bars in New York. Gotti was considered a “celebrity gangster” in the ‘80s because unlike most other members of the Gambino family and its criminal network, he didn’t keep a low profile. Instead, he flaunted his wealth and influence and quickly earned a reputation for his slippery ways.

By 1986, Gotti was head of the Gambino crime family and had earned two nicknames: “The Teflon Don” and “Dapper Don.” The latter was a

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