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AUGUST 2024 VOLUME 8, ISSUE 4
TOPH’S TAX RESOLUTION TIMES
513-342-4000 WWW.513TAX.COM
Pause and Reflect IN SEARCH OF LOST RELAXATION TIME
A funny thing happened when I decided to recognize National Relaxation Day on Aug. 15 as the focus of this article: I looked for examples of relaxing moments in my daily routine and couldn’t find any. There aren’t many times in Ashley’s and my lives right now to wind down and literally just do nothing. Our weekdays are pretty full. I set a goal at the end of last year to get rid of my “dad bod” and get back in shape. I get up at 6 a.m. three days a week and put in an hour at the gym with a personal trainer. (You can read about Ashley’s three-day-a-week workout routine inside this newsletter.) My workouts are very challenging and obviously healthy, but there is nothing relaxing about them. From there, I have a quick breakfast and help Ashley get the kids going, and then I go to work. At the office, my days are often packed with appointments. Now and then, I have a short break between appointments when I can relax
a little. Then, after making my 3-mile commute home from work, I walk in the door and am met by our six kids who all want attention. Hanging out at home on weekends without anywhere we have to be, or anything we have to do, is the closest thing to downtime that we get. Ashley and I enjoy socializing with adult friends at our community pool — as much as possible, that is — while still keeping an eye on our six kids in the water. And at the house, we have a nice outdoor deck where the kids can run around in our yard, and also in the yard of a kind neighbor who allows them to play there. That makes a nice outdoor space for the kids to run and play. Sometimes, Ashley and I get a little time to ourselves if we can get the kids to bed early, and then, after everybody is asleep, hang for a while at 9–9:30 p.m. We also schedule occasional date nights to give us a chance to decompress. The bottom line, though, is that we are both fully absorbed in raising the kids. Ashley’s role in that regard is far larger than mine. Dozens of movies have been made featuring heroic or beleaguered moms, but there aren’t any really good movies about harried dads — maybe because we aren’t all that interesting or dramatic. But for fathers, too, as the author Ben Fountain wrote, “Nothing really prepares you for kids, for the swells of emotion … nor for the all-enveloping labor of it.”
Toph taking a nap
When I look ahead, I don’t see this lack of downtime changing any time soon. I could make different choices or do things differently. But I’m running on a hamster wheel of my own making. I would never want to miss time with my kids at these ages; I would regret that forever. And in my business, I want to continue helping as many people as possible resolve their tax problems with the IRS. In pursuit of a little more relaxation, however, I’m going to continue this year looking for the right person to bring into our business as an apprentice — someone who is motivated, who has an entrepreneurial drive, and who can share some of the workload. That would be a win-win for us both. Meanwhile, as National Relaxation Day rolls around, I hope the holiday brings you and yours plenty of time to kick back, wind down, and chill!
In pursuit of a little more relaxation … I’m going to
continue this year looking for the right person to bring into my business as an apprentice.
–Toph Sheldon
DON’T LIVE IN FEAR - TOPH IS HERE!
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A Stark Reminder of the Importance of Wills and Trusts Everyone needs to have a will or trust set up for their financial future. Even if you feel too young to think about it, it’s never too early to prepare for the only guaranteed milestone in life. Take Chadwick Boseman’s estate as an example. Back in 2016, the actor (best known for his starring role in Marvel’s “Black Panther”) was diagnosed with stage III colon cancer, and he hadn’t even turned 40 yet. After quietly battling this awful disease in private, Boseman died only four years later on Aug. 28, 2020, leaving behind his parents, a wife, and many more family members who were devastated by their loss. CHADWICK BOSEMAN’S ESTATE DEBACLE
HERE’S HOW I FIXED IT TOPH’S TAX TRIUMPH
In some battles with the IRS, approaching the agency with a colossal tax bill can sometimes be better than haggling over a small one.
I represented a client recently who had run a business selling household goods on eBay for just one year. She had received a Form 1099 from eBay showing total sales of $230,000, but she didn’t realize she needed to report the income. The client shuttered the eBay business, moved on to a paid job, and made a fateful mistake: She forgot all about the Form 1099. A few years later came a nasty surprise. The IRS hit her with a tax bill of $120,000 — the amount the agency said she owed on sales of $230,000, plus penalties and interest. This case was unusual in a few ways. First, the client was only delinquent for one tax year, rather than several. Also, paying a six-figure IRS bill was clearly out of the question for her financially. Finally, she had never had any problems paying her taxes before her eBay venture or since. The client wanted to backtrack and prove to the IRS that she had never owed any amount even close to $120,000. The Form 1099 from eBay didn’t take into account her costs, so her taxable income probably would have resulted in a tax bill closer to $10,000 or $15,000. As with any tax resolution case, we began with the end in mind and worked backward. Our goal for this client was to reduce her final tax liability as much as possible. The best strategy was for her to accept the fact that she owed the larger amount, and then prove that she couldn’t afford to pay it. With that goal in mind, we made an Offer in Compromise to the IRS to settle the $120,000 debt for $294. And recently, the agency came back to us with a fantastic settlement offer of only $1,284 — roughly 1% of the original bill! If we had started by calculating my client’s actual taxes owed and begun negotiations over that smaller bill, agents would likely have refused to discount her debt further and put her on a time-payment plan. Instead, our strategy left our client with a much smaller liability. Needless to say, she was thrilled with the outcome — and walked away nearly debt-free.
Tragically, he didn’t leave behind a trust for his estate. When this happens, the deceased’s financial assets must go through probate, a court-supervised process for identifying and distributing those funds to the deceased’s beneficiaries.
In California, where Boseman lived, intestacy laws require the probate courts to decide where someone’s
assets can go. His widow petitioned the court to become the estate’s representative, which she was granted, allowing her to allot her late husband’s inheritance to be split evenly between herself and Boseman’s parents. However, because he didn’t establish a trust for these funds, legal fees and the U.S. government claimed a third of his net worth, a cut worth $1.5 million. And Uncle Sam could have taken even more of his estate if Boseman had lived in a different state without intestacy laws. If this is what the system can do to a celebrity with millions of dollars, imagine what can happen to the estates of everyday people. All your planning, saving, and preparing for your family’s future in the wake of your absence could be gone overnight if you don’t have the right legal documents in place.
–Toph Sheldon
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ASHLEY’S CORNER FITNESS ON THE FLY
As a mom with six kids, I often feel like a cruise director with a side hustle as an Uber driver — managing play dates, driving everybody to camps, checking the calendar for who has to be where at what time. It’s a lot! You get to the end of the day and you say, “Man, what did I do for myself? Nothing!” How do you make time for yourself? It’s hard, because as a parent, you kind of come last. The kids are all-consuming. You’re trying to teach them to be good people and you’re wondering if you’re messing it up. Are they getting too much screen time? What is the magic amount? Roz will be starting first grade this fall. Have we read enough books this summer? You worry about all of these things. I always do better if I get up early and exercise. Toph and I take turns; each of us leaves early three mornings a week to work out. Sometimes, I go for a walk with a friend, but I also have a studio where I can get a focused 20-minute workout, measure myself against my past performance, and see my progress — all on a tight schedule.
others arrive, in case the kids get fussy. The owner gets it, because she is a mom with kids, too. The trainers plan
the workouts, and the machines work each of the major muscle groups and track your performance on a screen. As you watch, you’re thinking, “Okay, I have to get above this green line.” It’s fun if the machine says you hit a new personal best! You’re like, “ Yessssss !” I like the results. I have more muscle tone and definition, and I am less tired with the kids. Exercise not only makes me happy, but it also makes me a better mom. I am turning 40 in October, and I’ve basically either been pregnant or breastfeeding for an entire decade. Now, I’m working out, I’m eating healthy, and I’m going to lose the rest of my leftover baby weight— just so I feel good. This next decade is going to be more about me!
The studio, The Exercise Coach, opens at 6 a.m. I almost always have at least one kid in tow, so I try to hit the earliest appointment times before
Take a Break
LIME CHICKEN WITH CORN AND POBLANO SALAD
Ingredients
Inspired by PureWow.com
Chicken •
Corn and poblano salad • 2 tbsp olive oil •
3 tbsp olive oil
• • • • •
1 cup all-purpose flour 1 1/2 tsp garlic powder 1/2 tsp cayenne pepper
2 poblano peppers, diced 2 garlic cloves, minced
• • • • •
1 14-oz can of corn 4 scallions, minced
1 1/2 tsp salt
3/4 tsp black pepper
Juice of 2 limes
• Zest of 1 lime •
1/3 cup chopped cilantro
8 chicken thighs
• Salt and pepper
Directions
1.
Preheat oven to 400 F.
2. In a large oven-proof skillet, heat olive oil over medium heat. 3. In a bowl, whisk flour, spices, and lime zest. Dredge chicken in the mix to coat. 4. Add chicken, skin-side down, to skillet, then place skillet in the oven for 30–35 minutes. 5. In a medium skillet, heat olive oil and add poblanos. Sauté 4–5 minutes. Add garlic and sauté for another minute. 6. In a bowl, add poblano mix, corn, scallions, lime juice, and cilantro, toss and serve with the chicken.
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
National Relaxation Day Reminds Us to Chill Don’t Make the Same Financial Mistake as Chadwick Boseman IRS Slashes Tax Bill for eBay Evader Ashley’s Corner: Finding Time for Yourself Lime Chicken With Corn and Poblano Salad Philanthropist Admits to 6-Figure Tax Fraud and Moves On
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Confession Pays: Billionaire Comes Clean With IRS TOPH’S TAX NIGHTMARES!
The IRS’s biggest tax fraud case against an individual in the nation’s history had a large but fleeting impact on a secondary figure — one of the nation’s wealthiest philanthropists, who was linked to the scheme. The outcome shows the power of transparency, backed by a glossy reputation, to help defendants shed the stigma of headline-grabbing IRS charges. As part of a historic crackdown on undeclared offshore bank accounts, the IRS indicted Texas billionaire Robert Brockman in 2020 on charges of concealing and avoiding taxes on $2 billion in gains — the largest individual tax charge in history. Brockman died in 2022 at age 81, before the case came to trial. Also trapped in the IRS headlights, however, was another big catch — billionaire philanthropist Robert F. Smith, founder and CEO of Vista Equity Partners, chairman of Carnegie Hall, and the nation’s wealthiest Black citizen, according to Forbes magazine.
Beloved for his philanthropy, Smith was called a national hero in 2019 when he pledged during his commencement address at Morehouse College to pay off the student debt of the entire graduating class. Smith’s reputation was shaken after he admitted playing a supporting role in Brockman’s alleged tax evasion scheme. Brockman was Smith’s associate and an early investor. Court papers show an offshore corporation managed by Smith was involved in a plan called Project Hotrod, which enabled Brockman to avoid taxes on $635 million he transferred from his holding company to offshore vehicles, according to The Wall Street Journal. Philanthropy experts at the time questioned whether Smith should remain as Carnegie Hall’s chairman. Smith avoided prosecution, however, by reaching a settlement with the Department of Justice. He admitted that he had hidden $200 million of his own income in offshore trusts
and accounts and agreed to pay $140 million in taxes and penalties. He also agreed to cooperate with prosecutors in the Brockman case and said publicly that he regretted his mistakes. Meanwhile, the rest of the world was ready to forgive and forget. Smith kept his post as chairman of Carnegie Hall and remains CEO of Vista Equity Partners. “It’s hard to find somebody who’s that wealthy,” said an attorney specializing in nonprofits, “who doesn’t have some issue in the past.”
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DON’T LIVE IN FEAR - TOPH IS HERE!
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