Tax Debt Strategies for Doctors Part 2

Tax Debt Strategies for Doctors Part 2

Orlando doctors are required like every other profession to report salary, monitor everyday costs as well as expenses, and pay taxes as indicated by Federal Tax Law. Doctors with healthcare practices are also required to record and pay quarterly 940 and 941 payroll taxes. Much the same as all other professions and businesses, when Orlando doctors don’t make good on their payroll taxes, doctors can face a forceful pursuit from the IRS or state tax agencies. Further, when payroll tax is delinquent, a doctor can lose his or her permit to practice medicine on the grounds that criminal charges can be filed for the inability to pay 940 and 941 payroll tax. Since this sort of expense is held in a trust from workers’ checks and ought to be paid to the Internal Revenue Service, it’s an intense offense. Any individual or business that owes a Payroll Tax Debt ought to never do the Trust Fund Recovery Interview with a Revenue Officer. They can threaten you however they can’t urge you to finish it without legal representation present. The interview is IRS Form 4180 and can prompt Federal criminal charges and perjury allegations. DO NOT complete this interview without counsel present that can offer legitimate insight on how to reply or not reply.

If you are a doctor in the Orlando, FL metropolitan region with tax debt, regardless of whether it is business or personal related, our group of Orlando Tax Attorneys is experienced at working with Doctors in each of the 50 states. We can defend you against State and Federal tax agencies and we can create customized tax debt strategies for your personal circumstances. In the last four years, we have fought for 156 doctors and have a 91% achievement rate in increasing effective results for medical professionals.

The accompanying article offers case studies from the previous year to help show our experience alongside the solutions we leverage to secure successful outcomes for each client.

Doctor with Tax Debt Case Study # 3

Dr. A contacted J. David Tax Law with $273,000 in federal personal income tax debt. He was previously in a $1,810 per month installment agreement with the IRS that he had defaulted on five-months earlier. Dr. A had fallen into poor health after suffering two stokes in a year and his ability to practice medicine was significantly diminished. Dr. A also had lots of debt other than tax debt and the IRS was about to get aggressive in collecting. Dr. A and his family were worried about losing their home due to a pending foreclosure and impending IRS actions.

J. David Tax Law’s Solution:

To settle Dr. A’s tax debt his attorney and staff did a detailed financial analysis of all assets and Dr. A’s future earning potential. Due to Dr. A’s recent medical issues that had created severe pressure on his finances, it was decided that negotiating an Offer in Compromise with the IRS was the best solution. Dr. A’s attorney was able to get a 90-day collection hold with the IRS to work on the case without the fear of bank levies or garnishments. After two months of working with Dr. A and his wife gathering proof of their financial circumstances, Dr. A’s medical history, and their overall financial hardship the Offer in Compromise was completed by his attorney and filed. During the time an Offer in Compromise is under review all IRS collection action is suspended. After five-and-a-half months the Offer in Compromise was accepted and Dr. A paid a lump sum of $19,110 to settle $273,000 in federal tax debt. The IRS saw the points raised in the Offer in Compromise by Dr. A’s attorney that it was unlikely he would be able to practice medicine again fulltime and it was best to take the amount offered rather than potentially getting less since Dr. A’s assets were under such pressure. This allowed Dr. A to focus on the other financial issues he was facing, and he ultimately saved his family home from foreclosure.

Doctor with Tax Debt Case Study # 4

Dr. F contacted J David Tax Law with $379,000 in payroll tax debt. Every quarter, employers are required by Federal law to withhold and pay 940 or 941 Federal payroll taxes to the Department of the Treasury. The doctor’s 3rd party payroll company made an error that had occurred over the course of three-years-and-three-months that created the huge Payroll Tax debt. The doctor received a visit to his practice by two IRS Revenue Agents from the IRS’ Criminal Investigation Division (CID). The practice visit was regarding the tax debt and the agents delivered a summons for all financial records for the practice. The Revenue Agents were also attempting to pressure Dr. F into completing the IRS Form 4180 Trust Fund Recovery Penalty Interview. Fortunately for Dr. F he refused to do the interview without legal representation present.

J. David Tax Law’s Solution:

The first step for Dr. F’s attorneys was to prove to the IRS that there was no willful intent by him or the practice to defraud the IRS of collected payroll taxes. After nearly two months the Criminal Investigation Division agreed but this did not relieve Dr. F of the $379,000 federal tax liability. The second major issue for Dr. F was having a firm of tax attorneys that could ensure his practice could remain open without the IRS seizing his business revenue either wholly or partially to pay off the large payroll tax debt. Dr. F’s attorneys at J. David Tax Law were able to structure a payment plan that allowed the payroll tax debt to be paid off over the course of years without severely damaging the cashflow of the practice. The key for Dr. F’s attorney to getting such a liberal payment arrangement hinged on proving that Dr. F did not willfully intend to withhold Payroll Tax payments. When Dr. F’s attorneys at J. David Tax Law were able to do just that, Dr. F was very relieved and thrilled with the overall resolution to his massive tax problem.

Click here to read Tax Debt Strategies For Doctors Part 1.

Are You a Doctor with Tax Debt? We Can Help!

As a doctor with State or Federal tax debt, the tax agencies will impose large penalties and even criminal charges if you don’t resolve your tax debt quickly. If you have been contacted by a State agency or the IRS regarding your delinquent tax debt, regardless of which one contacts you, our tax lawyers in the greater Orlando, FL can help. The initial consultation can be completed over the phone to ensure we can have a positive impact on your case. After the initial call, you can meet with your tax attorney in our office in downtown Orlando, FL.

Request a no-cost, no-obligation consultation with our firm by clicking here.