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FEBRUARY 2026 VOLUME 10, ISSUE 2
TOPH’S TAX RESOLUTION TIMES
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A VALENTINE’S DAY STORY Toph Recalls a High-Stakes Dinner With Ashley
Memories of special dates often stick with us for years. Lately, I’ve been thinking about the first Valentine’s Day Ashley and I had together.
I also remember that we had salad. To make it look as if I was the kind of chef who whipped up made-from-scratch salad dressing every day, I took premade salad dressing I had bought at the grocery store and poured it into a fancy-looking dish. (Ashley was only temporarily fooled. When we were a little further along in the relationship, she learned about my salad dressing subterfuge. We still joke about it, to this day.) Research shows memories have extra staying power if they’re connected to something that packs an emotional punch. Even though our first Valentine’s Day was more than 15 years ago and many of the details have faded, my memories of trying to impress Ashley and make her a permanent part of my life are still vivid. Although my Valentine’s Day scallop dish was a success, I’m sorry to say I haven’t cooked it again. I am not a person who cooks. I can grill food, but I don’t cook actual meals (other than putting things on the grill). I have so little time when I come home from work that I don’t want to have to focus my brain on something new. I’d rather order dinner out and spend that time relaxing instead. My dad probably felt the same way when he was my age; he didn’t cook much back then, but he cooks a lot now. He has become a really good cook, and he enjoys it. I can see myself following the same path later in life, when I have a little more time. Perhaps I’ll be inspired to re-create that scallops-in-orange-sauce entrée on a future Valentine’s Day. Meanwhile, that risky first foray into cooking years ago won the outcome I was hoping for: Ashley and I continued dating. Now, more than 15 years and six kids later, I’m happy to say we’ll celebrate another wedding anniversary this year!
Our first-ever Valentine’s Day date was shortly after we’d met for the first time. I remember inviting Ashley over for dinner in my apartment. I cooked a scallop dish, but I don’t remember much about the recipe. It had spaghetti noodles and a sauce with orange juice in it, and something else. Was I nervous? Probably. A lot of the details have faded in my memory. One thing I do remember about our first Valentine’s Day date is how much I wanted to impress Ashley! I was trying extra hard to cook a spectacular meal that would dazzle her. The scallop recipe was originally a dish my dad made, and I really enjoyed when we had it at my parents’ house. I wanted Ashley to think, “Wow, Toph must be a multi-skilled person who likes to cook!” (This is not true. I just followed my dad’s recipe and the entrée came out great.)
–Toph Sheldon
DON’T LIVE IN FEAR - TOPH IS HERE!
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Set Sail on a Getaway That Keeps Things Simple
Resolving disputes with the IRS can drag on for what seems like forever. One such cliffhanger was recently resolved after the agency kept my client in suspense for four years. My client was a self-employed businessman who installed ATM machines nationwide using unorthodox staffing methods: As he moved from city to city, he went to Walmarts and other places where people hung out looking for work or panhandling and asked, “Hey, do you want to work? I’ll pay you a couple hundred dollars to help me install ATM machines.” He paid each worker in cash at the end of the day and moved on to the next job. A 4-YEAR CLIFFHANGER ENDS IN VICTORY Toph’s Tax Triumphs
Have you been dreaming of a getaway, but the thought of renewing your passport is too much? Don’t worry, you can set sail without leaving the country. Passport-free cruises make it easy to explore charming towns, sunny beaches, and vibrant ports, all while keeping the logistics simple. Canada and New England Adventures Who says you need a passport to explore charming cobblestone streets, colorful harbors, and breathtaking fall foliage? Cruises from Boston, New York City, and Cape Liberty (New Jersey) make it easy to experience the magic of Canada and New England. Stroll through Halifax, Nova Scotia, savor lobster in Portland, Maine, or take in the quaint charm of Bar Harbor. With Norwegian Cruise Line, you can enjoy a journey hitting all these spots before returning to the Big Apple. Sun, Sand, and Caribbean Vibes If turquoise waters and golden beaches are more your style, the Caribbean is calling, and you don’t need a passport if you start from U.S. ports like Miami, Tampa, or Fort Lauderdale. Regent Seven Seas invites travelers aboard the Wonders in the Caribbean cruise, stopping in the Cayman Islands, Belize, Mexico, and more. For a tropical twist, Royal Caribbean’s Southern Caribbean Holiday cruise begins in San Juan and visits Barbados, Trinidad, Tobago, and St. Maarten. Bahamian Bliss Florida’s sunny ports are your gateway to The Bahamas. From Miami, Port Everglades, or Port Canaveral, you can hop on a Carnival or Disney cruise for a few nights of fun. Disney Cruise Line’s three-night Bahamian adventure aboard the Disney Wish includes Nassau and the legendary Disney Castaway Cay. Sand, sun, and smiles await without ever leaving U.S. waters. Bermuda Bound Just 570 miles off North Carolina, Bermuda is a perfect East Coast escape. Departing from New York City, Boston, Norfolk, or Miami, you can enjoy sandy pink beaches, historic Hamilton, and the charm of St. George. Carnival and Oceania offer cruises with relaxing days at sea and island adventures, perfect for a tropical getaway close to home. From the historic streets of New England to the sparkling waters of the Caribbean, these passport-free cruises make it easy to see the world while keeping things simple. A CRUISE WHERE YOUR PASSPORT CAN STAY HOME
The IRS, however, didn’t like my client’s modus operandi (MO) and disallowed nearly all the deductions he tried to take.
My client’s MO might have been unusual, but he wasn’t doing anything wrong. He paid workers less than $600 a year, so he wasn’t obligated to file 1099s for them. The fact that he hadn’t kept a log of whom he paid or how much was a problem, though. Lacking a paper trail, the IRS hit my client with a $700,000 tax bill. A Unique Turn After taking stock of my client’s finances, I made an offer in compromise to pay $37,000, based on what he could afford to pay. The IRS rejected the offer, so we appealed. At this point, the case took a unique turn. The appeals department agreed that my client couldn’t afford to pay $700,000 and added that he should be able to handle a $100,000 payment. The problem was that they didn’t give my client the option of paying $100,000. They simply sustained the agency’s earlier rejection of our $37,000 offer. This was the first time I’d encountered a situation like this. We escalated our case to federal tax court, where my client filed a pro se petition on his own behalf, claiming that rather than rejecting our offer outright, the appeals department should have given him the opportunity to pay $100,000. Nearly two years later, the tax court finally agreed that the appeals department hadn’t followed protocol. Meanwhile, I had been working on alternate strategies. We came back with another counteroffer to the appeals department, giving reasons why my client should only be required to pay $67,000. Recently, more than four years into this case, the IRS agreed and we settled for less than 10% of the agency’s original bill.
My client was hugely relieved, not only at the reduced debt, but that the stress and worry of his four-year IRS ordeal was finally over.
–Toph Sheldon
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ASHLEY’S CORNER No School, All Snow: The Joys of Sledding and Snow Angels
I have always loved snow days from school.
9:30 p.m., and I was thinking, “OMG, what if we don’t get a snow day?” When I finally went to bed at midnight, it had not snowed at all.
They rarely happened when I was a kid growing up in upstate New York. We got a ton of snow there most winters. I was in the Ski Club from second grade on, and we all took the ski bus every week to a ski resort. On the rare occasions when the schools cancelled classes, we would cross- country ski to our friends’ houses. Here in southwestern Ohio, however, everything shuts down if we get a couple of inches of snow. Before one recent snow day, everyone was predicting the shutdown five days in advance. The kids have a whole list of tricks they believe will help make a snow day happen. They put a white
Fortunately, we woke up to four inches of snow the next day, and I got the hoped-for call from the school. The kids were pumped! They thought all their snow day tricks worked.
It takes an hour to get everyone dressed to go out in the snow. But once we are finally there, the kids love making snowmen and tracks in the snow. They speed down a hill in our back yard on their sleds, and build jumps to try to catch some air. And they love jumping out of the hot tub in their swimsuits and landing in the snow, making snow angels, and jumping back in. The day goes by so fast! Later, we watched the rest of the movie. There’s just something about the excitement of having popcorn and curling up in blankets after you’ve been playing in the snow. If my childhood experience is any guide, it’s something you just don’t forget.
crayon near the front door, tuck a spoon under their pillow, wear their pajamas inside out and backward, and flush ice down the toilet. They have fun calculating the odds: “What if we put two spoons under our pillow instead of one? Maybe we’ll be twice as lucky!” We were so sure the schools would close that we started celebrating the night before. By 7 p.m., we were deep into board games. Later, we started watching a movie on a projector screen downstairs, “The Christmas Chronicles” with Kurt Russell. The kids were still awake at Take a Break
VODKA CREAM PASTA A delightful dinner party entree, this flavorful Italian dish promises to warm hearts on wintry nights!
Ingredients
• •
1 tbsp extra-virgin olive oil
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32-oz can crushed tomatoes
1 tbsp butter • 3 cloves garlic, minced • 2 shallots, minced • 1 cup vodka • 1 cup chicken stock
• Coarse salt and pepper • 16 oz penne rigate pasta • 1/2 cup heavy cream • 20 basil leaves, torn
Directions
1. In a large skillet over moderate heat, sauté oil, butter, garlic, and shallots for 3–5 minutes. 2. Add vodka in a steady stream and heat for 2–3 minutes to reduce by half. 3. Add chicken stock and tomatoes, bring to a light boil, then reduce to a simmer. 4. Season with salt and pepper. 5. In a large pot, cook pasta to al dente in salted boiling water while sauce simmers. 6. Stir cream into sauce until it bubbles and remove from heat. 7. Drain pasta, toss with sauce and basil leaves, and serve with sides of your choosing.
Solution on Page 4
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Inspired by FoodNetwork.com
Published by Newsletter Pro • 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
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INSIDE
1
Toph Recalls a Risky Valentine’s Day Venture With Ashley
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Island Hop on a Hassle-Free Adventure to These Travel Destinations Toph’s Tax Triumphs: Client Wins 90% Tax-Bill Cut Ashley’s Corner: Waking Up to a Snow Day Win Vodka Cream Pasta
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Toph’s Tax Nightmares: Midcentury Stars’ Weird Write-Offs
Fame, Fortune, and Foolhardy Write-Offs TOPH’S TAX NIGHTMARES!
While many taxpayers view the nation’s 37% top marginal tax rate as verging on extortion, it’s dwarfed by the 90%-plus rates of the 1940s and 1950s. After rising during the Great Depression and World War II, top marginal rates never fell below 70% through the early 1980s. Some great Hollywood stars of that era applied their creative talents to inventing novel tax deductions. The legendary comedian W. C. Fields tried to deduct gifts to his brother and sister as business payments for help with “story preparation.” Tax auditors were not amused. Party Hearty Celebrated film director George Cukor, who won an Oscar for “My Fair Lady,” drew no plaudits from the feds for claiming a party for another fabulous female, Tallulah Bankhead,
as a business expense. When Cukor deducted the cost of a lavish bash in Bankhead’s honor, tax officials ruled that “by no stretch of imagination could a party like that” be deemed necessary. Actors and Fame A film industry attorney made a strong case before Congress that actors, like oil wells, should be allowed a depletion allowance to account for the fleeting nature of their fame and earning power. Just as oil wells show big profits in their early years and eventually run dry, he claimed, actors who flame out deserve the same treatment. Congress wasn’t impressed. Just a Corporation Amid looser rules back then, Jack Benny and Dwight Eisenhower believed that big
financial gains (from Benny’s radio show and Ike’s bestselling memoir) should be treated as capital gains and taxed at that lower rate. Bing Crosby, Errol Flynn, and Bette Davis also set up corporations to receive and pay taxes at lower corporate rates. Work Stoppage Ronald Reagan claimed to limit himself to two films a year to hold down his income. Noting that any additional earnings would be taxed at a combined 91% state and federal rate, he asked, “Why should I have done a third picture, even if it was ‘Gone With the Wind?’” The pittance he would have received as take-home pay, the future president contended, wasn’t worth the work.
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DON’T LIVE IN FEAR - TOPH IS HERE!
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