TOPH SHELDON CPA FOR THE SELF-EMPLOYED ® 9200 MONTGOMERY RD., STE. 7B CINCINNATI, OH 45242 513-342-4000 TOPHCPA.COM
PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
INSIDE 1 The Best Investment
2
Launch a Podcast on a Budget
How a Tax Problem Became a Refund
3
When You Have Tax Questions, Are You Getting the Right Answers?
Cranberry Gingerbread
4
Willie Nelson Falls Out of Tune With the IRS
Toph’s Tax Nightmares
The IRS Sings Willie Nelson a Tune While many celebrities and public figures have tangled with the IRS, few stories are as interesting as Willie Nelson’s — or end with a record being produced to settle a tax bill. Nelson’s tax troubles began during the ‘70s after the musician made several bad investments and quickly racked up debt. Unfortunately, Nelson was surrounded by people who did not have his best interest in mind, including his manager, Neil Reshen. As Nelson’s debt grew, Reshen had filed tax extensions on behalf of Nelson but never actually followed through on those extensions. Around this same time, Nelson also followed the recommendations of accounting firm Price Waterhouse and put his money into tax shelters as a way to recoup some of the money lost in previous bad investments and to build up his portfolio. It didn’t work. In 1978, Nelson fired his manager, but by then, the damage was already done. In the 1980s, the IRS disallowed Nelson’s deductions because of past penalties and interest. However, Nelson’s debt to the IRS continued to rise. Then, in 1990, the IRS seized a majority of Nelson’s assets. According to the IRS, the musician owned $32 million in back taxes. Hit by a tax bill he couldn’t pay, Nelson’s attorney negotiated with the IRS and brought that number down to $16 million and then renegotiated to bring it down even more to $6 million. Despite the reduction, Nelson still couldn’t pay. As a result,
a large portion of Nelson’s estate was auctioned off. But it wasn’t all bad news; many of Nelson’s own friends bought the items at auction so Nelson could recover them later. Nelson also released the album“The IRS Tapes: Who’ll Buy My Memories?” Every cent made from“The IRS Tapes”would be sent to the IRS to pay down the $6 million tax bill. Nelson also filed a lawsuit against Price Waterhouse, saying that the company put his money in illegal tax shelters. The accounting firm settled with Nelson and by 1993, after a tumultuous two decades, he had successfully paid back his debt to the IRS.
4 • 513-342-4000
DON’T LIVE IN FEAR, TOPH IS HERE!
Made with FlippingBook Learn more on our blog