Toph CPA - October 2020

Toph CPA - October 2020

OCTOBER 2020 VOLUME 4, ISSUE 10

T O P H ’ S TAX RESOLUT ION T I M E S

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Is Your Work-Life Balance What You Expected It Would Be?

The issue of work-life balance is something a lot of self-employed business owners grapple with. They want to make their schedule their own, and that desire is exactly why a lot of people go into business for themselves. They want control and flexibility, but if they aren’t careful, they can easily lose that. I’ll get more into this in a moment. Right now, I have a lot of flexibility when it comes to my work schedule. We’ve found something that functions well with our family and lifestyle. With four kids, you can imagine we need a decent amount of flexibility, especially in the mornings and evenings. But it wasn’t always that way. When I started my business, I was trying to accommodate everyone by myself. I only had a limited number of clients, so I would make myself available around the clock to answer questions or have meetings. I let my clients decide my schedule for me. Most small-business owners have been there. When you’re starting out, you want to make everyone happy, no matter what. Over time, and as I gained more perspective and brought on more clients, I realized I was going about it wrong. I started a business because I wanted flexibility, and yet, I didn’t have it. With a growing family, I had to rethink my approach to the business and finally make it the business I wanted — a business that fit my lifestyle. Basically, I had to put a bigger divide between my business life and my personal life and to find a better work-life balance. When you’re self-employed, there will never be a total separation between the two, but you can find that happy medium. One huge thing I learned early on is that your clients don’t want you bending over backwards for them all the time (though it doesn’t hurt every once and a while). Clients and customers want you to have boundaries, and they respect you more when you’re willing to have those boundaries. When I realized these things, I began making changes in my day. With four kids, our mornings can be chaotic, and my wife, Ashley, appreciates when I’m there to help out. So, I keep my mornings focused on the household. I don’t schedule calls or meetings until later in the morning or afternoon.

At the end of the day, it’s the same thing. Right around 5 or 6 in the evening, the kids are back at it, Ashley can use a couple of extra hands, and I want to be there to help and spend time with my kids. However, once the kids are settled down and in bed, I can go back to work. In a sense, my day is split into two parts. The first part of the day — late mornings into the afternoon — is when I focus on meetings and phone calls, and I get a lot of work done with clients. In the evenings, I do more busywork. And it works! It took some trial and error, but we figured out what works for our family and lifestyle. Of course, every business is different. You can do yourself a favor by figuring out what works best for you and your situation and then implementing it.

–Toph Sheldon

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

You’re Not Alone

The IRS Threatens a Retirement (and a Truck Driver!) A Monumental Burden

Learn and Grow With a Professional Association

Business is competitive by nature. If competitors didn’t push our favorite brands to be better, they may not even exist. Our technology options would be limited without Apple’s ingenuity. Shipping options would be limited without UPS or FedEx. And access to our favorite athletic gear would be more limited if no one was pushing the top brands like Nike to innovate. Competition fuels our greatest inventions, but behind every great leader or business is a core network of like-minded people and innovators supporting them.

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

Tax Resolution Story No. 1

Meet James, a self-employed truck driver. When he initially called me, James owed the IRS a staggering $450,000. It had been years since James had last paid his taxes, so the debt had grown to an overwhelming size. Because of this, the IRS was aggressively breathing down his neck. They wanted those back taxes and weren’t about to leave James alone. It got to the point where James had to act and get things back on track. I went to work fast. The first thing was to get James current. I helped James file his taxes for the 2019 tax year. This is a big step in getting the IRS to back off. Once the current year was taken care of, I moved onto the back taxes. However, like many IRS negotiations that took place in 2020, the IRS went dark in the middle of it. For several months, James and I were at a standstill. Then, the IRS resumed normal operations and stated they would settle for $12,500, saving him more than $400,000! Needless to say, James took the settlement, and his once huge burden was no more!

Professional associations connect business leaders to fellow innovators in their industry without competition from local rivals. These organizations offer many benefits and little risk to business leaders looking to grow. If you haven’t yet joined a professional association, these three benefits just might get you to change your mind.

Education and Resources

Google is great for a quick answer, but when you need to learn something more nuanced, a simple internet search won’t cut it. Professional associations offer tailored, more in-depth help and resources like industry-specific training and webinars, how-to guides, and coaching. From peer advice and education to scholarly studies and reviews, associations act as a library of information for your industry.

Tax Resolution Story No. 2

Married couple Steven and Stacy had been enjoying their retirement. For much of their lives, they worked in the nonprofit sector. However, they also

Networking and Mentorship

had an outstanding debt with the IRS totaling $150,000. It was a debt that hung over their retirement, and because they lived on a limited income, there was no way they could pay the debt without destroying their retirement. So, they came to me for help.

Why reinvent the wheel when you can adapt it with a mentor? Associations connect you to leaders who have stood where you are standing and succeeded. You can learn a lot from their failures, wisdom, and guidance. You can also connect with peers in your position and bounce ideas off of them. You won’t have to worry about competitors “stealing” your processes, and you have an honest, go-to support team to help you refine them before presenting them to your team.

Initially, we offered the IRS $10,000 to settle, but the IRS declined. Then, I appealed, but the appeals department also said no. They weren’t going to settle, and the $150,000 debt stood. To make matters worse, the IRS wanted the couple to pay $2,500 per month toward the debt. Again, this was something the couple could not do — they simply didn’t have the income to support it.

Personal Development and Growth

A business is only as good as the leader managing it, and all business leaders have room for improvement. An association can give you the tools to get there. And as you continue to learn, you’ll discover personal and professional areas that can be further refined. This personal development only makes you and your business stronger. Are you still not convinced you should join an association? Think of it this way: Your competitors could be growing through their involvement in an association while you remain stagnant. Push forward and connect with your peers today.

After further negotiation, the IRS agreed to put the couple on“noncollectible”status. Because of Steven and Stacy’s limited income, the IRS finally determined this was a hardship case. As a result, the couple doesn’t have to pay anything—$0— assuming they don’t add any new balances in the future. It was a huge win for the couple!

–Toph Sheldon

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The Long Road to the Right Routine When we first started our business, I was working at the hospital full time. As we had kids, I slowly cut back my working hours, but it wasn’t easy. I only had a limited works well for us because Toph is a night owl. When I go to bed, he’s often still up working. For him, these are productive work hours.

amount of sick time or days off to use. There were plenty of times when Toph would need to stay home with the kids while I was at work, which meant he wasn’t working. Balance was hard to come by. Ultimately, we had to decide what work-life balance looked like to us. Toph likes to have family time, but he also likes to work. This is true of a lot of self-employed business owners. Of course, some like to work a lot while others want a business that runs on autopilot.

Meanwhile, I’m the early bird, and lately, I’ve been getting the most from that. I have discovered I am a much happier human if I have an hour all to myself right at the start of the day. Over the past couple of months, I’ve been using that hour to work out. That way, I start the day with a sense of accomplishment and a boost of energy. I’ve noticed that on days when I miss a workout or don’t get an hour of “me time,” my day just isn’t the same.

It took us a while to find our rhythm, and the truth is that it’s still changing. At the moment, we have found a routine that works for us, and that’s really what counts. But in a few months, it might look a little different. That’s how you find balance

The circumstances of this year allowed our family to rethink what our work-life balance looks like. I decided to spend more time at home with our kids and become a full-time mom. With me at home with the kids, Toph can adapt his schedule to that and work more if he chooses. For the most part, Toph works during most of the day and later in the evening, leaving him a lot of family time in the mornings and afternoons. This

— by finding a routine that works for you and adapting along the way.

– Ashley Sheldon

Classic Pumpkin Soup

TAKE A BREAK

Pumpkins aren’t just for pie— they make delicious soup, too! This fall, try your hand at this healthy soup recipe and warm up with a bowl.

Ingredients

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1 tbsp olive oil 2 shallots, diced

3 cloves garlic, minced 2 1/4 cups pumpkin purée (homemade or canned) 2 cups vegetable broth

1 cup canned light coconut milk

2 tbsp honey 1/4 tsp sea salt 1/4 tsp pepper 1/4 tsp cinnamon 1/4 tsp nutmeg

Directions

1.

In a large saucepan over medium heat, sauté olive oil, shallots, and garlic for 2–3 minutes. Add the remaining ingredients and bring to a simmer.

3.

Transfer the soup to a blender and purée. Pour the blended soup back into the pan. Cook over medium-low heat for 5–10 minutes. Taste and add additional seasoning as desired, then serve!

2.

4.

Solution on Page 4

Inspired by MinimalistBaker.com

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

PRST STD US POSTAGE PAID BOISE, ID PERMIT 411

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INSIDE 1

Does Your Business Really Fit Your Lifestyle?

2

Join a Professional Association and See Your Business Grow

The IRS Holds a Big Debt Over Retirees

3

Finding a Routine That Works for You

Classic Pumpkin Soup

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Is This the Biggest Tax Evasion Case Ever ?

The Biggest Tax Evasion Case in US History Toph’s Tax Nightmares

Walter Anderson was once a major telecommunications entrepreneur. According to The New York Times, he started a telecommunications company at the perfect time. It was the 1980s, and telecoms were being deregulated by the federal government. This allowed his companies to grow at an amazing rate, earning him millions of dollars. However, this entrepreneur wasn’t just starting telecom businesses. He was also starting corporations overseas in an effort to hide the money generated by his businesses based in the U.S. In 2002, the U.S. government started looking into Anderson’s dealings, and what they found was monumental. In 2005, Anderson was indicted on a charge that he had evaded $210 million in both federal and local taxes — $170 million from the federal government and $40 million fromWashington, D.C., where he did business. Anderson was accused of evading taxes for several years, including between 1987–1993, but he later admitted to avoiding his taxes in 1998 and 1999 as well. During the investigation, government officials seized a number of fake IDs, books on creating false documents, and instructions on how to hide from government officials. Court documents also stated that Anderson owed taxes on jewelry and wine purchases and that he had made numerous other extravagant purchases, including a painting by Salvador Dali, but had these

items were shipped to an “off- site” location in Virginia to avoid Washington taxes. In a turn of events, Anderson did not have to pay back the $210 million, despite the charges and impending judgment. That’s because, in 2007, a typographical error was found in Anderson’s plea agreement. A federal district judge ruled that he couldn’t “read something into a contract that is not there or to interpret uncertain language in the government’s favor.”

For the most part, Anderson was off the hook for participating in the biggest case of tax evasion in U.S. history. That said, Anderson still had to pay some of his back taxes: $23 million to the District of Columbia. Anderson also received several years in prison. He was released in 2012 and has since continued to found new companies.

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