Doctors in Orlando, Florida are required like all other professions to report income, keep track of day-to-day expenses, and pay taxes according to Federal tax law. Many doctors also have medical practices where they are required to file and pay quarterly 940 and 941 payroll taxes. Just like all other businesses and professions, when doctors don’t pay their taxes, doctors can face an aggressive pursuit by the IRS or state tax agencies. If the delinquent tax debt is payroll tax it can lead to the doctor losing his or her license to practice because criminal charges can be filed for failure to pay 940 and 941 taxes. Since this type of tax is held in trust from employees’ paychecks and should be paid to the Internal Revenue Service it’s a very serious offense. Any individual or business that owes a Payroll Tax Debt should never do the Trust Fund Recovery Interview with a Revenue Officer. They may threaten you but cannot compel you to complete it without legal representation. This interview is IRS Form 4180 and can lead to perjury and/or tax evasion Federal criminal charges. Never complete this potentially incriminating form interview without counsel present or legal counsel to guide you on what to answer or not answer.
If you are a doctor within the Orlando, FL metropolitan area with tax debt, whether it be personal or business tax related, our team of tax attorneys is experienced at working with medical professionals in all 50 states. We can defend you against Federal and State tax agencies and develop creative tax debt strategies for your unique situation. We have fought for 156 doctors in the last four years alone and have a 91% success rate in gaining successful outcomes for medical professionals.
The following article includes case studies from the past year to help demonstrate our experience along with the strategies we leverage to secure successful outcomes for every client.
Doctor with Tax Debt Case Study # 1
Dr. E contacted J. David Tax Law with $509,000 in federal payroll tax debt. A Revenue Officer (RO) from the IRS had been assigned and made appearances at the practice demanding payment. Dr. E’s staff had become concerned that the threats to shut the practice down, which the Revenue Officer had made in the presence of staff, was going to happen. Dr. E began attempting to sell assets such as real estate to raise cash to pay the tax debt. She needed immediate help in negotiating the best option possible so it would not shut her practice down. The IRS would not release the lien on some of her properties to allow the debt to be paid. The IRS agents were about to do a referral to the United States Department of Justice for asset seizure of all property she owned to be auctioned after seizure for unpaid Federal Payroll Taxes. The IRS and Justice Department had that right under Part 9, Chapter 7, Section 9 of the Internal Revenue Service Manual.
J. David Tax Law’s Solution:
To settle this doctor’s tax debt and save her medical practice allowing her employees to remain employed, our tax experts handled negotiations with the IRS Revenue Officer. The legal staff performed an investigation into the tax debt to ensure it was indeed valid, assessed for maximum penalty abatement, and most importantly a Federal lien subordination agreement to allow Dr. E to liquidate the real estate to pay the tax debt down. The outcome was a reasonable installment agreement that was $3760.00 less per month than what the IRS originally demanded after the debt was paid down by Dr. E to $211,700. This plan allowed Dr. E’s practice to remain viable and the remaining tax debt to be paid over the course of several years. Dr. E was very happy with the outcome since it put her in compliance with the IRS and ensured that her medical practice could do business and continue to grow.
Doctor with Tax Debt Case Study # 2
Dr. T contacted J. David Tax Law with $207,000 in federal personal income tax debt. An IRS Revenue Officer was already assigned by the IRS, and Dr. T received a demand for immediate payment in full with a 30-day deadline. Dr. T had not filed federal tax returns in three years which was when his accountant of 23 years had died. After waiting three weeks and taking no action, Dr. T needed help within a few days’ time. He needed a tax law firm to help protect his family’s home and to attempt removal of the bank levy imposed by the IRS. That levy took $18,901 from his personal bank account the day before he contacted our firm. The IRS applied the amount taken in the bank levy to the outstanding tax debt. Further, the IRS was in the process of instituting a wage levy that would have seized 65% of Dr. T’s wages from his medical practice if the deadline for full payment was not met.
J. David Tax Law’s Solution:
To settle this doctor’s tax debt, prevent the impending wage levy, and ease Dr. T’s financial concerns, his tax attorney immediately negotiated a collection hold with the assigned IRS Revenue Officer. After performing a financial analysis of Dr. T’s assets, verifying the tax liability assessment as legitimate, and validating the tax debt, Dr. T’s attorney and staff prepared and filed three years of delinquent federal income tax returns, which brought Dr. T into IRS tax filing compliance. Once the federal returns were filed it lowered the tax debt tremendously since the IRS had done a substitute for returns with no expense allowances and assessed a 25% Failure to File Penalty for not filing the taxes. Dr. T’s attorney then negotiated a $639 per month installment agreement with the IRS and was successful in getting $11,901 returned from the original bank levy.
When you have State or Federal tax debt, the tax agencies will take action by assessing large penalties and even criminal charges. The collection attempts will include an aggressive pursuit if you do not resolve your tax debt issues quickly. If a State agency or the IRS has contacted you regarding your delinquent tax debt, whether it be IRS or State, our tax attorneys in the greater Orlando, FL metropolitan area can help. The initial consultation can be done over the phone to ensure we can have a positive impact on your case. After that, you can meet with your attorney in our downtown Orlando, FL office.
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He is the founder and Managing Partner of J. David Tax LawSM. 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.