Doctors and IRS Tax Debt

Posted: 07 Jul 2008 | Categories: Taxes

Out with the old…The days of the private medical practice are pretty much gone. The majority of doctors work within a group of doctors. As a doctor you know that your group consists of multiple doctors, nurses, technicians, medical coders, etc…and they all have to get paid. So what happens when your physician’s group gets into a tax debt with the IRS? What, if anything can you and your comrades do about this tax debt?

Everyone is in trouble…Well if the tax debt is for the whole practice every doctor in that practice is liable for the debt, as well as anyone working for the practice with check signing privileges.

Cause and effect…So how does an entire medical practice get into a tax debt with the IRS? Some possibilities may include improper book keeping. Payroll taxes may not have been getting paid to the IRS every quarter, or they weren’t getting paid at all. There was some kind of mistakes in the amount of income received from insurance companies or individuals. These are just some of the possibilities that could cause an IRS debt.

Start making a plan… What can you do if there is a tax debt placed on physician’s association? The first thing you need to do is take care of the tax debt immediately, the alternative is not something you want to think about. And what is the alternative to taking care of the debt? Once the IRS has exhausted all other options to collect money, they start levying your wages, bank accounts, and assets.

The collections start…The IRS can demand that any insurance company payments would go to the IRS first. Without an income, you can’t pay the staff, repair or buy new equipment, and have general trouble with any expenses related to your practice. And speaking of levies the IRS can start seizing the medical equipment in your office!

Paying on time…Unfortunately the only option really open to a medical practice when it comes to paying off an IRS debt is to enter into an Installment Agreement payment plan. Once you enter into an Installment plan, any collection action such as levies will be temporarily suspended. However the IRS determines how much the monthly payment will be. But it will be far less than any levy the IRS can place on your practice.

Let’s face it, people need doctors for everything from allergies to cancers, and the last thing a doctor needs is to have that hampered because of an IRS debt.

Now you have the smoking gun…Use it!

Richard Close was an IRS-Hitman. He worked as a revenue officer for the IRS and his father was the head of the collections branch for 30 years; so it runs in the family. He left that behind and now he’s partnered with Tax Defense Network to help thousands of Americans with their tax problems. He gives the tips and tricks for you to fight the IRS and win! Visit him at: http://irs-hitman.blogspot.com or http://www.taxdefensenetwork.com , or contact: email irs-hitman@taxdefensenetwork.com or 1-888-248-9058.

Article Author :Richard_Close

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