Cincinnati Tax Resolution - September 2020

Cincinnati Tax Resolution - September 2020

SEPTEMBER/OCTOBER 2020 VOLUME 4, ISSUE 9

T O P H ’ S TAX RESOLUT ION T I M E S

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How to Avoid the Dreaded ‘Death by a Thousand Cuts’

One large wound can kill you just as easily as a thousand small wounds.

As a small-business owner or self-employed professional, you’re a jack-of-all-trades. There are times when this can be an asset, but then there are other times when it can do more harm than good. You may find yourself being pulled in all directions. Put out this fire, solve this problem, make this call, answer this question, and on and on. When you’re being pulled in all directions, you might not notice your stress and anxiety slowly building. You have a thousand little things going on around you. Each little thing is preventing you from focusing on your priorities —what you really want to get done. The thing about stress is that it can build up in the background. It can hide under the surface, accumulating until something finally sets it off and you’re left completely burnt out. It’s death by a thousand cuts. As a self-employed business owner, I’ve dealt with this. I’m fortunate to have many clients who rely on me to solve their tax issues with the IRS, among other things. The last several months have brought interesting challenges. People have been coming to me to help them navigate all kinds of issues and problems that I’ve never dealt with before. I was being asked a lot of questions I don’t normally get, and a lot of times I didn’t have the answers. This meant I was dividing my attention. I was helping some clients resolve their tax issues while trying to helping others figure out the various solutions to their unique problems. Because of all the economic uncertainty, there were many different questions. Don’t get me wrong, I’m happy to help in any way I can. But what I didn’t realize was that I was handling a thousand little things, rather than focusing on the core of my business. This is something just about every business owner has dealt with. You have your specialty, and you know it backward and forward. But you’re going to find yourself with clients or customers who want you to solve a problem you aren’t uniquely suited to solve. You still want to help and make sure everyone is happy. As a result, you spread yourself thin and end up experiencing a lot of stress.

from both yourself and your clients. You can’t let your clients dictate how you operate. If they come to you for something you don’t specialize in (even though it may almost be a good fit), don’t be afraid to refer them to another business. You may know someone who is suited to help them. It can be hard to say no to business, but it can also be necessary. It’s important to have a high level of self-awareness. Many people fail to realize how stressed they are until it’s too late. This is the prime example of death by a thousand cuts. It builds and builds, and you don’t feel it until you’ve been bled dry. It’s not a good feeling. You have to recognize when the little issues start to compile. Define what you want to focus on and plan your day around accomplishing those tasks. For instance, at the start of your week, open up your calendar and block off the time you want to spend focusing on certain activities, like reading and responding to emails. Designate separate time to make phone calls and attend meetings. These are just a few examples, but if you control how your day looks and what you want to focus on, you can better manage your stress and avoid death by a thousand cuts.

–Toph Sheldon

How do you get around this? One thing you need to keep in mind is that you don’t have to make everyone happy. You have to become somewhat immune to criticism,

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Change Can Be Easy

The IRS Goes on Hold and Leaves 2 Clients in Limbo! The Waiting Game

Pam Marmon’s Outline for Effective Post-Pandemic Transformation

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

Pam Marmon understands what it means to adapt. After

growing up in Bulgaria, Marmon had to modify

Tax Resolution Story No. 1: Jill is a self-employed private investigator. Given the nature of her business, she was worried that a tax problem would reflect poorly on her business. People put a lot of trust into private eyes. She was concerned it could harm her reputation and cause bigger problems. Jill owed the IRS $90,000. She called me about a year ago, but it wasn’t until the spring of 2020 that I made headway with the IRS. Right before the pandemic hit, the IRS and I verbally settled the debt at $9,000. Then the IRS brought cases to a halt. We were left in the dark. Would the IRS pick up where they left off? Was the verbal agreement enough? After several months of waiting, the IRS continued work on cases in July, and communication resumed. The IRS confirmed their offer of $9,000, and Jill agreed. The deal went through, and Jill was thrilled to finally be rid of her debt! Tax Resolution Story No. 2: Hank owed the IRS $150,000. He was self- employed and didn’t have the means to settle the debt on his own. I took on the case and went to the IRS with an initial offer of $5,000. The IRS said no, but they would be willing to settle for $35,000.

her way of living when she emigrated to the U.S. Today, she’s a CEO, entrepreneur, wife, and mother who believes that change doesn’t have to be difficult. In fact, she’s mastered it. Marmon has even established a company, Marmon Consulting, that helps other companies develop strategies for executing transformation.

In Marmon’s book, “No One’s Listening and It’s Your Fault: Get Your Message Heard During Organizational Transformations,” she outlines her proven methods for effective communication in any company setting, from a major corporation to a family business. Released on March 24, 2020, Marmon’s advice is timely in a period when many business owners are searching for proactive solutions and the next step in finding post- pandemic success. Marmon’s book is the perfect guide for business leaders who recognize the need for tangible change and want to execute it as effectively as possible. The key, Marmon explains, is to identify your company’s culture and cater your plan’s language to suit what will resonate with your employees the most. This will establish a sense of alignment with your business’s vision and direction, which can be one of the biggest hurdles to overcome. You cannot achieve success in a period of change if your team is doubtful and unwilling. With your company united toward your vision, you can begin to enact real change. However, this is only the beginning. Marmon’s book also outlines how to connect with fellow leaders in your company to develop a framework for growth. By creating a stable foundation and inspiring change, you’ll find this time of major transition to be much smoother than you may have anticipated. As a result, your company will come out on top at the end of the COVID-19 era. Marmon’s mantra is inspiring: “With the proper process, change is not hard.” And with her book, “No One’s Listening and It’s Your Fault,” business leaders can see just how simple change can be.

That was a big difference. However, it was still a good deal

considering the original debt of $150,000. Hank and I discussed options. The bottom line was Hank wasn’t in a position to drop $35,000 to settle the debt. He simply didn’t have it.

I appealed the IRS to knock down their offer to something Hank could afford. Like Jill’s case, the pandemic was fast approaching. Right as the IRS said they would take $19,000, they went dark.

The good news is Hank was more than happy to pull together $19,000 to settle his debt. But we were left in limbo waiting for the IRS to respond. Once again, in July, we heard from the IRS. They sent me a formal letter with Hank’s revised balance of $19,000. Needless to say, Hank was glad he saved $131,000!

–Toph Sheldon

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Our Journey to Today

If the pandemic had happened a few years ago, our family would be in a very different situation. When Toph and I first got married, he hated his job, so he eventually quit to start his own business. But it took a while for him to figure out just what that business was going to be.

Thankfully, Toph got his business off the ground. He put a lot of himself into his tax resolution business. Several years later, while we may be dealing with a pandemic, we’re in a much better place. He works, and I can take care of the kids. I’d say in many ways, the timing of the pandemic ended up working out because we were in a place that allowed me to step away from my job to focus on the kids. As I look back a few years ago and contrast it with today, I realize just how important it is to not take things for granted. You never know what might happen. While you always hear advice to “be prepared,” there are some things most of us aren’t prepared for — a pandemic included. But, despite how hard and stressful it is right now, there is light at the end of the tunnel. I know, because we’ve been there.

While he was figuring it out, I had our first child, Mac, and I was working full-time. We had also just bought a new home for our family, so it was a stressful time. If you added on a pandemic on top of that, we would have been in a very bad spot. I bring this up because a lot of families are going through this. They’re trying to figure out their next step, and it’s hard.

In our situation a few years ago, Toph went into “daddy day care” mode. He was taking care of Mac and figuring

out a business plan. Plus, he was doing a lot of the cooking and cleaning around the house while I was at work. We were in a holding pattern for a while, pinching a lot of pennies and eating a lot of pasta and leftovers. We didn’t always know what tomorrow would look like.

– Ashley Sheldon

Bacon and Egg Breakfast Pizza

TAKE A BREAK

This twist on a pair of classic breakfast foods is the perfect back-to-school fuel for your kids. Whip it up at breakfast or any time of day, really— it’s never too early or too late for pizza.

Ingredients

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1 package premade pizza dough

2 tbsp olive oil, divided

6 eggs

2 tbsp water

4 slices bacon, cooked and crumbled 2 cups cheese of your choice, shredded

•

Directions

1. Preheat oven to 400 F. Grease a 15x10x1-inch pan. Spread the dough evenly over the bottom of the pan and 1/2 inch up the sides. Prick it with a fork and brush with 1 tbsp oil. Bake until lightly browned, about 7–8 minutes. 2. In a nonstick skillet, heat the remaining oil on medium. In a bowl, whisk the eggs and water together. Add the mixture to the skillet and stir until thickened and no liquid egg remains. 3. Add the egg to the baked crust in an even layer. Sprinkle on the bacon and cheese, then bake 5–7 more minutes before serving.

Solution on Page 4

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 How to avoid ‘Death by a Thousand Cuts’

2

How to Enact Effective Change

Playing the Waiting Game With the IRS

3

There Is Light at the End of the Tunnel

Bacon and Egg Breakfast Pizza

4

From Fresh Debt to Fresh Prince

Toph’s Tax Nightmares

The IRS Rocks Will Smith’s House

It was the 1980s. Will Smith and his collaborator DJ Jazzy Jeff were riding high. They had a major hit song on the radio, their second album had gone triple platinum, and the duo had just won their first Grammy for best rap performance for “Parents Just Don’t Understand.”

It turns out Smith neglected his taxes for several years in the late ‘80s. As a result, the IRS seized a significant portion of Smith’s extravagant purchases. Smith says, “The IRS took all that stuff, so I was like, broke, broke, broke.” After the IRS seized nearly all of Smith’s assets, he was able to clear his tax debt. But he was left with practically no money to his name, and he needed to do something about it. His girlfriend at the time suggested that Smith spend time outside of “The Arsenio Hall Show” and maybe he would bump into someone with influence. It worked. In the studio lot, he met Benny Medina, a music producer and talent manager. Medina was impressed by Smith and even invited the young rapper to a party at the house of the renowned music producer and composer Quincy Jones. At the party, Jones asked Smith to audition for a show that was in the works called “The Fresh Prince of Bel-Air.” Smith performed a quick song and scene, and Jones was impressed. In a matter of minutes, Smith had become the Fresh Prince. He would spend six seasons on the NBC show, while also appearing in a few movies, such as “Made in America” and “Six Degrees of Separation.” As “Fresh Prince” started to wrap up in the mid-‘90s, he started landing major movie roles, including roles in “Bad Boys” and “Independence Day.” Since then, Smith and the IRS have been on good terms.

The money was rolling in, and Smith couldn’t wait to get spending — and spend he did. There were cars, motorcycles, designer clothes, and accessories. He put his credit card through the paces and pushed it to the max. Then reality sunk in. In a video on his YouTube channel, Smith recounts his poor money management, saying, “I had spent all my money, and I didn’t forget, but I didn’t pay the IRS. In my mind, I wasn’t trying to avoid taxes; I was just like, ‘Ah, damn, they need their money.’”

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