The tax requirements for Jacksonville doctors, like all other professions, include reporting income, keeping track of day-to-day expenses, and paying taxes according to the Federal tax laws. When doctors are self-employed or have employees at their medical practice, they are also required to file and pay quarterly 940 and 941 payroll taxes. Similar to all other businesses and professions, if a doctor doesn’t pay his or her taxes, the doctor can come face to face with the IRS or state tax agencies as they aggressively pursue payment. When the delinquent tax debt is payroll tax, it can lead to the doctor’s loss of his or her license to practice as criminal charges can be filed for failing to pay 940 and 941 taxes. Payroll tax is held in trust from employees’ paychecks. When it is not paid to the Internal Revenue Service, it’s a very serious offense. Any individual or business owing a Payroll Tax Debt should never complete the Trust Fund Recovery Interview with a Revenue Officer. Without legal representation, the Revenue Officer may threaten you but he or she cannot compel you to complete it. IRS Form 4180 is the form interview. Perjury and/or tax evasion Federal criminal charges can be prompted from this interview. It is advised to never complete this form interview as it can be potentially incriminating without counsel present or legal counsel to advise you on what to answer or not answer.
If you are a doctor in the Jacksonville, FL metropolitan area with tax debt, whether your tax debt is from a failure to pay personal or business taxes, our team of tax attorneys in Jacksonville, FL is experienced at working with medical professionals in every State. We can develop customized tax debt strategies for your unique situation and defend you against Federal and State tax agencies. Our tax attorneys have fought for 156 doctors in the last four years exclusively and we have a 91% success rate in gaining successful outcomes for doctors.
To help demonstrate our experience, the following article includes case studies from the past year along with the strategies we leverage to secure successful outcomes for every doctor.
Tax Debt Case Study # 3 – Dr. A
J. David Tax Law was contacted by Dr. A who had $273,000 in federal personal income tax debt. Five months ago, he negotiated a $1,810 per month installment agreement with the IRS that he defaulted prior to his call to our firm. After suffering two stokes in a year, Dr. A had fallen into poor health and his ability to practice medicine had significantly diminished. Dr. A also had lots of non-tax related debt and the IRS was ready to get aggressive in collecting. Dr. A and his family were fearful they would lose their home as a result of a pending foreclosure and imminent actions by the IRS.
J. David Tax Law’s Tax Debt Solution:
To settle Dr. A’s tax debt, his attorney and staff performed a thorough financial analysis into all assets and assessed Dr. A’s future earning potential. Because Dr. A’s recent medical issues had also created severe pressure on his finances, negotiating an Offer in Compromise with the IRS was the best solution for his situation. Dr. A’s attorney was successful in getting a 90-day collection hold with the IRS to work on the case without fear of bank levies or wage garnishments. Following two months of working with Dr. A and his wife to gather proof of their financial circumstances, Dr. A’s medical history, and their overall financial hardship, his attorney completed and filed the Offer in Compromise. While an Offer in Compromise is under review, all IRS collection action is suspended. Following five-and-a-half months, the Offer in Compromise was accepted by the IRS and Dr. A was able to pay a lump sum of $19,110 to settle his federal tax debt totaling $273,000. In the Offer in Compromise, Dr. A’s attorney was able to make points that it was unlikely he could practice medicine again fulltime. It was best for the IRS to take the amount offered rather than potentially get less because Dr. A’s assets were under such pressure. This allowed Dr. A’s focus to remain focused on the other financial issues he was facing. Ultimately, he was able to save his family home from foreclosure.
Tax Debt Case Study # 4 – Dr. F
Dr. F contacted us 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. Over the course of three-years-and-three-months, Dr. F’s 3rd party payroll company made an error that created a huge Payroll Tax debt. Two IRS Revenue Agents from the IRS’ Criminal Investigation Division (CID) had visited the doctor’s office. The agents delivered a summons for all financial records for the practice due to the doctor’s payroll tax debt. The Revenue Agents were also trying to pressure Dr. F into doing the IRS Form 4180 Trust Fund Recovery Penalty Interview. Fortunately, Dr. F refused the form interview without legal representation present.
J. David Tax Law’s Solution:
The first step in settling Dr. F’s tax debt was to prove to the IRS that neither Dr. F nor his practice willfully intended to defraud the IRS of collected payroll taxes. The Criminal Investigation Division ultimately agreed after two and a half months, but this did not relieve Dr. F’s $379,000 federal tax liability. The next major issue for Dr. F was having in place a firm of tax attorneys that would be able to work with the IRS to ensure his practice could remain open without seizing his business revenue either in whole or part to pay off the significant payroll tax debt. The attorneys at J. David Tax Law assigned to Dr. F’s case successfully structured a payment plan allowing the payroll tax debt to be paid off over the course of years without severely limiting the cashflow his practice needed to operate. The key component for Dr. F’s attorney that enabled such a liberal payment arrangement hinged on proof that Dr. F did not willfully intend to withhold any Payroll Tax payments. Dr. F’s attorneys at J. David Tax Law were able to do just that, and Dr. F was very relieved and thrilled with the overall outcomes for his sizable tax problems.
When doctors have State or Federal tax debt, the action imposed by the tax agencies include the assessment of large penalties and in some cases, criminal charges if the doctor does not resolve his or her tax debt issues quickly. If the IRS or a State tax agency has reached out to you regarding delinquent tax debt, our tax attorneys in Jacksonville, FL can help whether it be IRS or State tax debt. To ensure we can have a positive impact on your case, the initial consultation can be completed by phone. Following the consultation, in our Jacksonville, FL office near J. Turner Butler Boulevard and I-95, you can meet with your tax attorney.
For a no-cost, no-obligation consultation with our tax attorney firm, click here.
He is the founder and Managing Partner of J. David Tax Law®. He is the winner of the 2019 Ultimate Tax Attorney awarded by the Jacksonville Business Journal. This award recognizes law firms and attorneys who show exemplary professional talent and skill while demonstrating superior client care, leadership, charitable concern, and civic engagement. Jonathan graduated from Chapman University School of Law. He has practiced law since 2011.
We provide tax solutions for our clients who have IRS and state tax debts, unfiled returns, audits, etc. We advise you on future compliance that enables your individual or business tax problems to be behind you for good.
7077 Bonneval Rd Suite 200, Jacksonville, FL 32216