Check out our January newsletter!
JANUARY 2025 VOLUME 9, ISSUE 1
TOPH’S TAX RESOLUTION TIMES
513-342-4000 WWW.513TAX.COM
IRS Flexes New Muscle BRACE FOR AN ARMY OF AGENTS-IN-TRAINING
Taxpayers beware! The IRS is flexing some new enforcement muscle.
the agency’s usual pattern. Seeing the IRS pull returns for audits within months after filing is extremely unsettling. It’s a little like Big Brother: As soon as you turn over your tax return, you are immediately under scrutiny. If this is a sign of a strategy change at the IRS — well, that is a little scary. The IRS also is sending a series of new or revamped form letters to taxpayers, using different language to notify them that they are delinquent or in violation. Some of the letters clients have received are unlike any I have seen before. Also, the revenue officers in the field appear to be taking a tougher stance in negotiating or resolving cases we already have in the works. The burden of proof on taxpayers has grown, and so has officers’ resistance to offers in compromise or negotiated settlements. This adds up to a lot of new activity at the IRS. In years past, the agency’s long hiatus during the pandemic led us to advise some of our clients that the best strategy was to do nothing, and just let any IRS collection initiatives ride. That is no longer an option. Now, it appears the agency is really coming after people. The silver lining for taxpayers, in theory, is that IRS customer service should improve after all these new hires are trained. Unfortunately, dealing with the IRS by phone has not gotten any easier yet. The telephone service is still terrible, forcing taxpayers to call multiple times to get an answer from an employee who knows what they’re doing. As the new Trump Administration takes office, it will be interesting to see what happens. Whether Washington moves toward looser enforcement or reduced funding of the IRS is the X Factor in the tax outlook. Meanwhile, however, the situation is only going to get worse for people who don’t take action to resolve their tax debt. Don’t hesitate to contact us with questions or concerns about any IRS activity affecting you, or that may affect you in the future. We are here to help!
We are seeing a significant uptick in the agency’s enforcement activity and in the number of new auditors-in-training cutting their teeth on taxpayers. As I wrote last May, the IRS resumed collection actions early this year after a long hiatus during the pandemic. The agency has been recruiting staff like crazy since Congress awarded $59 billion in new IRS funding in 2022 and 2023, and we have known for a while that stepped-up enforcement activity was coming. The agency moved more slowly than expected, however, partly because it wasn’t able to recruit and hire as many revenue agents as planned, according to the Congressional Budget Office. But now, the logjam is clearing. We are seeing more personnel at work with more resources. I have had two new clients in recent weeks asking for help with IRS audits. We usually don’t see many clients asking for audit help, but these cases are being pursued by brand-new auditors who are shadowing and being trained by more experienced auditors. Moreover, the agents are already auditing my clients’ 2023 returns, which they just filed in 2024.
The IRS has not customarily audited taxpayers’ returns until a year or two after they are filed. These new “instant audits” are a departure from
–Toph Sheldon
DON’T LIVE IN FEAR - TOPH IS HERE!
513TAX.COM • 1
Building a snowman outside in the cold air is much better than sitting in a warm room with a cellphone for maintaining a child’s physical and mental health in the wintertime. Although most people tend to stay indoors during winter, spending time outside on snowy days can give people of all ages a needed boost. Here are a few interesting facts that show how a winter wonderland can enhance our well-being. The Perks of Outdoor Play Did you know you’re more likely to catch a winter cold if you stay indoors? Although we instinctively huddle in close quarters when temperatures drop, hiding inside makes us more susceptible to germs that thrive in stagnant air. Studies have shown that being cold may trigger our immune systems, which means playing outside in Get Outside, Feel Fantastic! Winter Wonders for Children’s Health
BUSINESS OWNER SAVES $147,000 ON TAXES TOPH’S TAX TRIUMPH
The IRS may be the most aggressive tax-collection agency on the planet, but sometimes, its attempts to squeeze as much money as possible out of taxpayers end in a misfire. That was the outcome of a recent case where a settlement demanded by the IRS from our client would have destroyed his ability to pay the agency anything at all. Our client, an electrical contractor in his mid- 60s, owed about $160,000 in payroll taxes from a previous business he had owned and then shut down. He was still working part time as an independent contractor in a new business and collecting Social Security to supplement his income, but he didn’t have many assets. Basically, he was just getting by. The IRS was still coming after him to recover a portion of those back payroll taxes. Mandi, who spearheaded our work on this case, submitted an offer in compromise about a year ago to settle our client’s debt for $4,700. The IRS rejected the offer, based on the shaky premise that his new business had assets that the agency claimed could be liquidated for more than $130,000, enabling our client — in theory — to pay a big chunk of the tax debt. The problem with that reasoning was that forcing our client to liquidate those assets would also force him to shut down his business and use the proceeds to pay business debt, leaving no net equity in those assets for the IRS to claim. Mandi immediately appealed the decision, with me serving as a sounding board. At an appeals hearing about six months later, the IRS overturned its original decision and offered to settle the debt for $12,216 — less than 8% of the original bill. Mandi saved our client almost $148,000! Successfully settling a case like this requires having long experience and a good understanding of the rules relating to an offer in compromise. Once the IRS realized it would be not only unfair to force our client to liquidate his business assets but also would defeat the agency’s purpose, officials became willing to negotiate. Mandi’s strong advocacy for our client, and her willingness to push back on the IRS’ decision and present a well-documented counter-argument, won this electrical contractor a financial reprieve and a new lease on life. Needless to say, he was ecstatic!
the fresh winter air is often better for a child’s body than snuggling
up in a warm living room.
Getting outside in winter also puts a child’s mind in motion. Although the sight of icicles and one’s breath in
winter are old hat for adults, these seasonal events could inspire wonder and curiosity in young people, allowing them to learn new things about the world. Encouraging your child to design and build the ultimate snowman also stimulates their imaginations far more than watching TV indoors. Winter play also helps keep children’s senses sharp when inclement weather disrupts their usual routines like school and sports. The Dynamic Benefits of Vitamin D Sunlight is one of nature’s greatest gifts to our health, as it provides us with vitamin D. Getting outside when the sun appears on a winter’s day can do wonders for our mood, as increasing our vitamin D levels reduces anxiety and stress. Instead of letting our kids hide in dark rooms on snow days, let them venture outside and receive one of Mother Nature’s easiest cures for the winter blues!
–Toph Sheldon
2 • 513-342-4000
Published by Newsletter Pro • www.newsletterpro.com
ASHLEY’S CORNER Paradise Found: Our Escape to Saint Lucia
Toph and I recently took our first vacation together in a long time without my being pregnant or packing a baby along. After climbing 2,000 feet straight up a rocky 4-mile trail to the top of a mountain in Saint Lucia, I reveled in my newfound freedom. “Man, I feel great!” I told Toph. “This is so much easier!” You don’t realize how much harder your body works when you are carrying around those blessed little burdens. As readers know, Toph and I had been planning to take our annual week- long vacation together, sans kids, on the beautiful Caribbean island of Saint Lucia. We went with three other couples and stayed in a resort on a hillside overlooking a little town, and we got a good workout from the start. We had to walk down 55 steps just to get to the pool, and 70 steps to get to dinner — then climb back up when we were done! We were laughing: “All right! We are getting a good workout!”
hot mud feels weird, but it works like an exfoliant. Your skin is so smooth afterward! We enjoyed time with our friends and played games by the pool in the evening. Toph and I
also took a day by ourselves. We went ziplining, which Toph had never done. For dinner, we walked down into town. To our
surprise, we were the only people at the restaurant! The seafood was fresh and delicious. It was also very funny that we had the restaurant all to ourselves. It was a date night, just for the two of us. That week away was so different from a date night at home, where your babysitter might text you and you know you have to get up the next day with your kids. I came back feeling so refreshed! After this little break, I am absolutely convinced that I am a better mom. I highly recommend it! When you return, you will be ready for anything: Bring it on, tiny humans! What have you got for me today?
Our biggest workout was that two-hour climb up Gros Piton, Saint Lucia’s second-highest mountain. From the top, we could see the entire island.
That was just one of our many daily excursions. We took three boat rides — a sunset cruise, a snorkeling ride, and a dolphin watch from a catamaran. We toured a cacao plantation, where we made chocolate bars! That took some hard work, pounding the beans with a mortar and pestle for 10–12 minutes. We were sweating! We also saw an active volcano, stood beneath a waterfall, and even took a mud bath. Being covered in
Take a Break
CITRUS-HERB PORK ROAST
Ingredients
Inspired by TasteOfHome.com
•
1 boneless pork sirloin roast (3–4 pounds)
• • • • • • • •
1 tbsp sugar
1 tbsp grapefruit juice
• • • •
2 tsp dried oregano 1/2 tsp ground ginger
1 tbsp steak sauce
1 tbsp reduced-sodium soy sauce
1 tsp pepper
1 tsp grated orange zest
2 medium onions, cut into thin wedges 1 cup plus 3 tbsp orange juice, divided
1 tsp salt
3 tbsp cornstarch
•
Egg noodles, cooked
Directions
1. Cut roast in half. In a small bowl, combine oregano, ginger, and pepper; rub over pork. In a large skillet coated with oil, brown roast on all sides. Transfer to a slow cooker; add onions. 2. In a small bowl, combine 1 cup orange juice, sugar, grapefruit juice, steak sauce, and soy sauce; pour over roast. Cover and cook on low for 4–5 hours or until meat is tender. Remove meat and onions to a platter. 3. Transfer cooking juices to a small saucepan. Add orange zest and salt. Bring to a boil. Combine cornstarch and remaining orange juice. Gradually stir into the pan for 2 minutes or until thickened. Serve with pork and noodles.
Solution on Page 4
513TAX.COM • 3
Published by Newsletter Pro • www.newsletterpro.com
Cincinnati Tax Resolution Powered by Toph Sheldon 9200 Montgomery Rd., Ste. 7B Cincinnati, OH 45242
PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
513-342-4000 513TAX.COM
INSIDE 1
Toph Sees a Surge in IRS Enforcement Activity
2
Outdoor Play Power-Ups
Our Firm Saves a Client $147,000
3
Ashley’s Corner: Our Caribbean Escape!
Citrus-Herb Pork Roast
4
Grammy Nominee Meets Tax Trouble
STAR POWER MEETS TAX TROUBLE TOPH’S TAX NIGHTMARES
The five Braxton sisters grew up singing together in the church where their father was pastor, performing as a quintet, singing backup for each other on tour, and starring in their own family reality show. The sisters also shared another pivotal trait — a tendency to pile on mountains of debt.
Tamar Braxton, 47, who sang in a shimmering five-octave range, won a BET Award and three Soul Train Music Awards during her career and was nominated four times for a Grammy. She and her mother and four sisters starred in a WeTV reality show called “Braxton Family Values.” Tamar also starred with her husband Vincent in another reality show, “Tamar & Vince.” (The couple divorced in 2019.) In addition, Tamar was the co-host of a Fox daytime talk show, “The Real.” Braxton said in an Instagram post that she had recently reached an agreement with the IRS. “Like many Americans, I was in negotiations with the IRS to resolve discrepancies from a few years,” Braxton said. She claimed that she was in full compliance with tax law. Braxton also chided her critics: Tax woes, she said, are “not uncommon when you have several companies and make a lot of revenue. Let’s move on to the next topic.”
Singer and television personality Tamar Braxton, the youngest of the five sisters, was hit by tax liens last year accusing her of owing the IRS more than $2.4 million, covering the years 2015, 2016, 2017, 2020, and 2021, based on documents reported by In Touch, a celebrity magazine.
Tamar’s oldest sister, Toni, the most commercially successful sibling, filed for bankruptcy twice, in 1998 and 2010. Another sister, Towanda, filed for bankruptcy in 2019, listing among her debts a
Nevertheless, news of the liens drew fire on social media. “One thing I will never understand is why these celebrities think they can ignore the IRS,” said a YouTube influencer who calls herself the “Grey Haired Diva.” She added, “They get vicious when you ignore them.”
$30,000 loan from her sister. Tragically, the Braxtons also suffered the 2022 death of their sister Traci, from esophageal cancer.
4 • 513-342-4000
DON’T LIVE IN FEAR - TOPH IS HERE!
Page 1 Page 2 Page 3 Page 4Made with FlippingBook Ebook Creator