Cincinnati Tax Resolution - July 2022

Cincinnati Tax Resolution - July 2022

JULY 2022 VOLUME 6, ISSUE 7

TOPH’S TAX RESOLUTION TIMES

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I TRIED QUALIFYING FOR THE US OPEN HERE’S HOW IT WENT!

When I was writing about the movie “Tin Cup” in last month’s newsletter, I mentioned that it inspired me to try qualifying for the U.S. Open as a teenager. Well, I still haven’t given up on that dream. This spring, even though I hadn’t played golf for 10 months, I gave the U.S. Open Local Qualifier another shot. My expectations going into the event were very, very low. I certainly didn’t walk into the Maketewah Country Club in Cincinnati thinking I would dominate the competition. I was up against 143 other golfers and woefully out of practice. Like I said, I hadn’t played 18 holes of golf in 10 months! But as a former pro, I couldn’t resist the temptation to see if I still “had it.” Could I still compete, even though I was rusty? Before my first hole, things felt promising. It was a beautiful day with mild temperatures in the mid-60s, and I teed off at 8 a.m. — which put me in the fourth group of golfers. That was an advantageous position. It meant the course wouldn’t be as crowded and I’d move through more quickly. I felt pretty good and not terribly nervous … then things quickly started to go wrong. I try to play in two or three competitive tournaments each year, but for the last few years , I’ve been plagued by the same problem: starting weak. I notoriously get off to a bad start to the round, and it takes me a few holes to find my groove. That happened again at the U.S. Open Local Qualifier. For the first three holes, I was a painful five over par. (For the non-golfers out there, this means it took me five shots more than what it should have to complete just three holes!)

to advance). But I was pleasantly surprised by the state of my game! I’m actually happy with shooting a 79 and finishing in 63rd place. To come back to the golf course after 10 months away and place in the high middle of a group of talented golfers is encouraging. I drove home from Maketewah Country Club thinking that if I actually put more energy and time into golf, then I could still be competitive. I wouldn’t be Tiger Woods by any stretch, but there’s no doubt that even out of practice and approaching 40, I may not “have it,” but I’ve still got some game and don’t feel overmatched! That said, I’m not planning to actually get back into golf any time soon. I’m a husband and father now with five kids to support. I’m going to stick to what I’m really good at: eliminating IRS debt for my clients. Just open up this newsletter and you can read about my recent success saving one business owner roughly $170,000.

But as a former pro, I couldn’t resist the temptation to see if I still ‘had it.’

But then, I found my rhythm! After settling down and parring the fourth hole, I actually played quite well. For the final 15 holes, I was only three over par, and I finished with a respectable score of 79 (eight over par). I also finished in a tie for 63rd place out of 144 golfers and actually beat more than half of the field.

P.S. If you haven’t watched “Tin Cup” yet, what are you waiting for?

–Toph Sheldon

Sure, 63rd place may not sound amazing, and I didn’t move on to the next round of qualifying for the U.S. Open (I would have needed a 71

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ADVOCATING FOR WOMEN AROUND THE WORLD

Meet Whitney Wolfe Herd

Editor’s Note: The following article mentions sexual assault.

Dating apps are very popular with the younger generation, and one app has taken the world by storm. Bumble Inc. was created in 2014 by Whitney Wolfe Herd and is an online dating platform where women get to message their matches first. Just two hours after Bumble launched, its stock price soared, making her a billionaire. She is now one of the top female CEOs in tech and the founder of one of the largest dating apps in the world. Wolfe Herd’s experience with toxic and abusive relationships and misogyny within the tech industry inspired her to create Bumble. She was the co-founder of Tinder in 2021, another dating app, but she soon left the company after an executive (who was also her boyfriend) sexually harassed her. Wolfe Herd then sued Tinder over these allegations, but Tinder denied any wrongdoing. Eventually, both parties settled. This experience pushed Wolfe Herd to challenge dating norms, and she wanted to inspire women to take their power back. Although Bumble is known for allowing women to message their matches first, this only scratches the surface of Wolfe Herd’s branding and marketing strategy. The app has grown beyond just dating — now, you can network professionally and find new platonic friendships. Wolfe Herd is focusing more on creating a brand that fosters a safe place for women to network — she wants it to be a women’s social platform. Today, Wolfe Herd is pushing Bumble into cultures and countries where women don’t traditionally have a voice. Although this may seem risky, she says, “We need to go where we’re needed the most.” She is also using her platform to advocate for legislation outlawing domestic and international digital sexual harassment. Wolfe Herd wants women to take control, and she will stop at nothing until she reaches her goals.

SOLVING A FAMILY TAX SCANDAL I Saved My Client $170,000!

About 99% of the time when someone has a tax problem with the IRS, it’s because unfortunate life circumstances like illness, divorce, or addiction sneaked up on them. But every once in a while, a case comes across my desk that does NOT follow that pattern — like this sad, crazy situation that is currently tearing my client’s family apart. A few years ago, this client (we’ll call him Steve) happily ran his family- owned daycare business. He thought everything went well, then the IRS came knocking at his door. The agency dropped a bomb: Apparently, Steve’s business owed them to the tune of $1.1 million in unpaid payroll tax, penalties, interest, and corporate income tax! Steve couldn’t believe it. How was that possible? His stepdaughter managed the company finances, and he trusted her completely. After the IRS reached out, though, he did some digging … and discovered that unbeknownst to him, his stepdaughter hadn’t paid OR filed any of the company’s payroll taxes for years. This realization felt devastating, and it got worse when the IRS came after Steve personally. As the owner of the daycare, they felt he was the responsible party within the business and would be accountable if it shut down. So, they came after him for $190,000 in trust fund recovery penalties (TFRPs). Steve felt terrified — so he called me for help! I immediately took the stress of the situation off his shoulders and started negotiating with the IRS. In March 2020, I offered them a settlement of $100. That sounds ridiculously low, but the truth is that Steve wasn’t living lavishly. He relied on his paycheck from the daycare and didn’t have anywhere near $100,000 in the bank. The IRS came back with a counter offer of $42,000, but that was still more than Steve could pay, so I appealed their decision. Ultimately, the IRS agreed to cut their counteroffer in half and settle Steve’s $190,000 penalty for just $20,460! This was fantastic news. With his personal issue resolved and $170,000 saved, Steve can focus on healing his family and fighting for his business. I was happy to help.

–Toph Sheldon

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ASHLEY’S CORNER The ‘Less Screen Time’ Experiment

A few months ago, when the kids got out of school, I had a big question hanging over my head: What the heck will we do all summer?

more they want to watch. So, when school ended, I made a decision that it was time for a screen detox.

The kids and I have spent summer getting as much outdoor time as possible. We’ve gone swimming, ridden bikes, gotten creative with sidewalk chalk, blown bubbles, and taken family walks to the playground and the library. I swear, the kids are SO much more pleasant when they spend the day outside. As I write this, we’ve gone two days straight without a movie and no one has even asked for one. It’s glorious! I’ve found that when I do let the kids have screen time, giving them a time limit is a game-changer. If I say, “Okay, you have 40 minutes and we’ll turn the iPad off at 10 a.m.,” they’ll hand the iPad right over after the timer goes off.

When you have five small kids to entertain, you quickly realize you have a

lot of hours in the day to fill. What can you do when you’ve already fed them breakfast, played five games, and it’s only 10 a.m.? It’s so tempting to sit the kids in front of a screen because it holds their attention, they like it, and I can get stuff done! But, of course, it’s not that simple. We all want what’s best for our kids, and the pediatrician says they’re only supposed to have 1–2 hours of screen time per day. In our house, it’s easy for that time frame to get out of control. They watch one 20-minute show, then another, and before I know it, they’re at more than an hour. You probably know the feeling.

I’m still figuring out the right screen time balance for our family, but so far, the experiment has been a success. I hope we can keep it up.

I’ve noticed that when I don’t pull the plug fast enough, too much screen time makes my kids a little crazy! The more they watch, the

Take a Break

RED, WHITE, AND BLUE TIRAMISU

Ingredients

• • • • • •

3 cups raspberries 3 cups blackberries 2 cups blueberries

• • • • •

1 cup orange juice

1 cup heavy whipping cream 2 8-oz cartons mascarpone cheese

2 cups strawberries, sliced 1 1/3 cups sugar, divided

1 tsp vanilla extract

2 7-oz packages crisp ladyfinger cookies

4 tsp orange zest

Directions

1. In a large bowl, gently mix all berries with 1/3 cup sugar, orange zest, and orange juice. Cover and refrigerate for 45 minutes. 2. In a medium bowl, beat the cream until soft peaks form. 3. In another medium bowl, mix mascarpone cheese, vanilla, and 1 cup sugar. Gradually fold in whipped cream. 4. Over a shallow bowl, drain the berries. Dip the ladyfingers in the leftover juice and allow the excess to drip off. 5. In a 13x9-inch dish, place half the ladyfingers in a single layer. Add a layer with half of the berries and then half the mascarpone mixture. Repeat layers, starting with ladyfingers. 6. Cover and refrigerate overnight before serving. Inspired by TasteOfHome.com

Solution on Page 4

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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 Tries for the US Open

2

Meet One of the Youngest Self-Made Billionaires

Toph Jumps Into a Family Tax Scandal

3

Ashley’s Corner: Real Talk About Screen Time

Red, White, and Blue Tiramisu

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Back Taxes Send a Rapper to Prison

THE IRS SENDS RAPPER FAT JOE TO PRISON

Don’t Let It Happen to You!

In 2012, rapper Joseph “Fat Joe” Cartagena was living the good life. He had three Grammy nominations under his belt, ran his own record label called Terror Squad, and had collaborated on hit songs with Ashanti, Ja Rule, and Lil Wayne, among others. Then, the IRS came knocking. The agency had uncovered a problem: Fat Joe hadn’t filed tax returns for 2007, 2008, 2009, or 2010. This meant he’d skipped out on paying taxes on over $3.3 million in earnings from his performances and royalties on his music sales. Fat Joe’s back tax bill totaled $718,038 — which is not small change to the IRS. And it turns out his failure to file wasn’t a mistake. In December of 2012, Fat Joe pled guilty to 2 out of 4 counts of failing to file with the IRS. The charge included up to two years in prison.

Fat Joe acted late to address his tax problem, but with the wrath of the IRS upon him he did act fast. He swiftly paid back his $718,000 tax debt, and thanks to that good will and his charity work, he was only sentenced to four months in federal prison in 2013. Judge Cathy Waldor also slapped the rapper with a $15,000 fine. Four months in prison is far better than two years, and in general, prison sentences for failing to file tax returns are rare. But Fat Joe’s story is still a reminder to stay on the IRS’s good side and file any missed tax returns ASAP. (And of course, working with a tax resolution professional is the best way to do both.) As the news continues to remind us, no one is safe from the IRS when they go it alone, not even Grammy-nominated musicians with deep pockets.

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DON’T LIVE IN FEAR - TOPH IS HERE!