Toph Sheldon, CPA for the Self-Employed July 2019
JULY/AUGUST 2019 VOLUME 3, ISSUE 5
T O P H ’ S TAX RESOLUT ION T I M E S
513-342-4000 WWW.TOPHCPA.COM
Desperation Leads to Big Opportunity
How I Became a Tax Problem-Solver for the Self-Employed
“There is no doubt that my desperation was the main catalyst for where I am today.”
While I was busy celebrating National Small Business Week in early May, I realized you may not know what it took for me to become a tax problem-solver for the self-employed and how “CPA for the Self-Employed®” came to be. Opening my own business was an endeavor I always imagined doing. In fact, it started with a neighborhood lawn-mowing business I started with a friend when we were 16. However, becoming self-employed and starting my own
business at this stage of my life was something that really happened more out of desperation — not because I had a master plan and dream of what I wanted to do with my professional life. The truth is that I always wanted to be a pro golfer. This comes as no surprise to anyone who has known me for a long time. I was so confident I could make a living playing golf professionally that I quit my job as an assistant club pro in Cincinnati so I could move to Florida and play the Minor League Golf Tour. (You can still look up my career winnings of a whopping $330.50 at MinorLeagueGolf.com.) It didn’t take long for the reality of not having a steady paycheck to take its toll. In less than a year, my bank account was running low, my credit card balances were high, and my golf game had tanked. I literally had a combination of both the yips and shanks in less than a year. I could barely break 80 and, at one point, was actually embarrassed to even step foot on a golf course. Needless to say, I was in a really dark place. So, this is when desperation kicked in the first time. Being the headcase that I was and with zero confidence in my golf abilities, I knew I had to cut my losses and try to make a living doing something else. After doing some soul searching, I decided the best path to take was to pursue my CPA certification because I had previously obtained an accounting degree from the University of Cincinnati. I successfully obtained my CPA license and got hired by a wealth management firm in Cincinnati to work on their tax and financial planning team. On the surface, everything seemed great because I had a steady paycheck again and was back on my feet. There was only one problem: I was
absolutely miserable. I hated working in a cubicle, was bored to death, and quickly
realized I was not going to last long in a traditional corporate atmosphere. After sticking it out for about 15 months, I couldn’t take it anymore and resigned.
Over the next couple years, I went on to work for five different employers as well as dabble in various self-employed ventures — none of which ever panned out. At one point, I was literally trying to buy and resell golf clubs on the internet to make a few bucks. As you can imagine, desperation was in full force once again. Then something happened that completed changed my professional life (and personal life as a result). It was November, and my CPA license was on the verge of expiring because I was behind on my required continuing education credits. Because I wasn’t ready to give up my CPA license just yet, I decided to sign up for a free four-hour online presentation so I could get some much-needed education credits. At the time, my home office was in my laundry room, so I figured I’d get caught up on laundry while this presentation played in the background. Within the first five minutes of the presentation, I realized that I wasn’t going to be doing any laundry that day. There was something unique about the presenter and this presentation that really piqued my interest. For the next four hours, I was glued to my squeaky office chair and soaking up every bit of information I could. Once the presentation ended, I
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TOPH SAVES THE DAY A Look at Some of My Recent Success Stories
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proceeded to spend a large sum of money that I didn’t have on a credit card that was nearly maxed out so I could learn more about the presenter and their presentation. Three months later, I was still broke, still had mounting credit card debt, and was still desperate. But I had a vision. I was going to become the go-to tax problem-solver for the self-employed. At this point, I was going all-in and leaving all my other “gigs” behind. (To this day, I still have boxes of golf clubs in my basement that I never sold online because I haven’t had the time to do so.) I knew that if things didn’t work out this time that another domino may fall in my life (e.g., my marriage), so I was truly desperate for this to work. Despite being “all-in,” it wasn’t easy. It took three months for me to get my first self-employed client to hire me to resolve their tax problem. I was able to help them settle their $75,000 tax debt with the IRS for about $17,000, which is a great success story for both my client and me. Despite this confidence boost, business still wasn’t booming. After the first year, my bank account was still very low and credit card balances were still very high. But I wasn’t giving up; I still had a vision and knew I needed to continue to stay focused with a consistent and persistent approach. By the end of my second year, I still wasn’t doing that well, but things were progressing, and I was starting to believe that I really had a business here. By the end of the third year, things were much more stable, and, for the first time, I knew for sure that there was no looking back.
Over my years of fighting the IRS and solving tax problems for the self- employed, I’ve been able to help people out of some serious binds. Whether they were self-employed farmers, plumbers, doctors, or lawyers, my goal was always the same: to get people back on the financial track to success. Let’s take a look at the wide range of clients I’ve been able to help get their money back in the right hands. Toph Helps a Salesman Shave $144,000 From IRS Tax Debt I came in contact with a client who had been working as a self-employed salesman for many years. When he came to me, the IRS was literally breathing down his neck; an IRS officer had just showed up at his door trying to collect on the $163,000 debt they claimed he owed. My client had not filed tax returns in six years and knew he was in trouble. After I intervened, I was able to get him current on all his delinquent tax return filings and negotiate a deal with the IRS to settle his IRS debt for only $19,000, saving him $144,000. Needless to say, he was a pretty happy client! Toph Helps a Realtor Settle $63,000 Tax Debt for Only $20,000 I was approached by a self-employed realtor who had been dealing with the IRS for several years. She was always current on filing her tax returns but never quite able to make the payments required to satisfy her tax balances. She had tried negotiating several payment plans with the IRS, but nothing lasted long-term. After getting involved, I was able to
help her work out a deal with the IRS to settle the $63,000 tax debt for $20,000, saving her $43,000. This deal was especially rewarding because the IRS accepted our original offer without any negotiating! Toph Helps a Business Executive Amend Tax Return and Cash In on a $23,000 Refund A business executive in Cincinnati was recently referred to me by a client. At the time, this executive was only looking for help with preparing some tax returns, which is a fairly simple engagement. His previous returns had been prepared by one of the
Today, as I look back on everything that has happened, there is no doubt that my desperation was the main catalyst for where I am today. Combine that with the fact that my wife was still willing to take a chance on me and believe in me. It’s been quite a roller coaster ride for us, but we sure are glad we are staying on for the full ride. P.S. I still haven’t been able to revive my golf game — I shot 82 at this year’s U.S. Open qualifier — but I’m not completely giving up on it yet either. –Toph Sheldon
largest accounting firms in the world, but after reviewing his previous returns, I suggested that his prior tax preparer had made a mistake that had cost him about $20,000 in additional taxes he had already paid. I
recommended he amend his return and request a refund, which I proceeded to prepare for him. Four months later, the IRS sent him a $23,000 refund (his original $20,000, plus $3,000 in interest). I guess I should be glad the big firms never wanted to hire me!
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The Time We Spend Together Father’s Day at the Sheldon Household
By the time you read this, Father’s Day will have come and gone, but I want to take a moment to talk about Toph’s role as a father and how we celebrate the day dedicated to dads. With our busy schedules, family time is precious. On Father’s Day, Toph enjoys getting some extra sleep, so I’ll keep the little ones busy during the early morning hours. However, once Toph is up, it’s a free-for-all. Toph’s a fun dad and spends the day playing “chase” with the kids or jumping on the trampoline with them. Sometimes, he even makes up clue games for the kids to really test their mettle. The kids love it when they have dad time.
Speaking of family, outside of our immediate family bubble, we’re close with our extended family. We’re fortunate that we live close to Toph’s parents and sister. This means we get to spend quality time with them throughout the year. The rest of the family is out of town, but that just means more road trips! With Toph running his business and with me busy with the kids, it’s far too easy for quality personal time to end up on the back burner. For all the hard work we put in and all the daily stress we can deal with, we do what we can to make time for one another. For many families, including our own, Father’s Day serves as a reminder to let the fathers in our lives know just howmuch we appreciate them. We certainly let Toph know! And Toph did
When it comes to Father’s Day“gifts,”Toph appreciates experiences over a traditional gift —no wrapping here! And when it comes to experiences, over the past few years, Toph has headed out on his yearly golf trip with a few friends. As it happens, the golf trip coincides with Father’s Day —but what dad would turn down a game of golf on Father’s Day? This year, Toph didn’t have a golf trip, so when Father’s Day arrived, we made the most of it and had a family day, spending the entire day out in the sun doing some of our favorite things: hiking, swimming, and going on a picnic.
much the same thing on Mother’s Day in May.
Between sleeping in, having a good meal together, and spending quality time outdoors, you can’t ask for a better Father’s Day. I’m thankful for Toph, my kids, and every moment we spend together.
– Ashley Sheldon
Juicy Lucy Sliders
TAKE A BREAK
Inspired by Bon Appétit magazine
The Juicy Lucy is a burger with cheese hiding in the patty, and it is a staple in Minnesota. We think it should be a Fourth of July favorite nationwide.
Ingredients
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2 lbs. ground chuck beef, 20% lean 8 slices melting cheese (like American, Swiss, Muenster, or cheddar)
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16 small potato rolls, toasted Salt and pepper, to taste
Your favorite burger accompaniments
Directions
1.
Divide beef into 16 evenly sized balls.
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Meanwhile, heat a cast-iron skillet to medium-high. Lightly coat skillet with oil and cook patties in batches. Brown one side undisturbed, about 3 minutes. Carefully flip and cook until desired doneness, about 3 minutes for medium. Serve on toasted potato rolls with your favorite accompaniments.
2.
Rip cheese into roughly equal pieces, creating 16 equal portions. Using your index finger, create a small indentation in each ball. Fill indention with cheese and pinch meat around to seal. Then gently form balls into 3/4-inch-thick patties. Season patties.
6.
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Solution on Page 4
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TOPH SHELDON CPA FOR THE SELF-EMPLOYED ® 9200 MONTGOMERY RD., STE. 5A CINCINNATI, OH 45242 513-342-4000 WWW.TOPHCPA.COM
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INSIDE 1
Desperation Leads to Big Opportunity
2
Toph Saves the Day!
3
How We Spent Our Father’s Day
Juicy Lucy Sliders
4
Reality Stars With Tax Troubles
Toph’s Tax Nightmares
The Reality of a Reality Star Can Be a Harsh One
The life of a reality TV star isn’t all glitz and glamour, but something tells us you probably already knew that. Between the long hours and potential chance of making little to no income on your show, it can be a stressful gig to pull off just to get your 15 minutes of fame. Then you have the people who have too much money on their hands. Having money can have a grave effect on someone, especially after going from a nobody to a somebody seemingly overnight. These reality TV stars were no different. Instead of using their newfound income for a greater good and deciding to obey the law, they found themselves on the wrong side of the IRS with some serious consequences. Richard Hatch (The Original Survivor) This resourceful fellow found himself on top of the world after winning the first season of the wildly popular CBS show“Survivor” in the early 2000s. What happened next wasn’t so impressive. In 2006, Hatch was found guilty of tax evasion and served part of a six-year prison sentence because of his actions. As if he hadn’t had enough time to think about what he’d done, he was sent back to the slammer in March 2011 for failing to file amended returns. There’s something to be said about the fall from grace of a reality star who was made a hero in front of 50 million viewers every week, but I think this says it all. Next tax season, let’s make it a goal to survive our own financial woes, lest we end up like old Richard here.
Mike“The Situation”Sorrentino (A LongWay From the Jersey Shore) The meteoric rise of MTV’s“The Jersey Shore”was a sight to behold. As soon as the show hit the airwaves, the ragtag group of Jersey locals were thrust into the spotlight and quickly had their private lives made public in a very major way. One of the standout bad guys from the original run of this phenomenon was Mike Sorrentino, better known as“The Situation.”While he was busy chasing girls and drink specials, he was also trying to hide his money from the tax man. He went to trial in 2015 on charges of tax evasion for filing false returns from 2010–2012, and the prosecution certainly wasn’t there to play games. By the time it was all said and done,“The Situation”was sentenced to eight months in jail, a $10,000 fine, and a restitution bill to the tune of $123,000. That makes several situations we wouldn’t want to be involved with. Don’t end up like these guys. For all your tax needs, contact Toph Sheldon, CPA for the Self-Employed® to stay on top of all your necessary filings. Give us a call at 513-342-4000 or visit our website anytime at TophCPA.com to see howwe can help.
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