Damiens Law Firm

Tax Attorney

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How to Survive the IRS

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The Internal Revenue Service is a force to be reckoned with, especially when collecting unpaid tax debt. Medical practitioners who owe back taxes can risk losing their professional licenses and ability to practice if they don’t address their tax debts. 

However, it isn’t just individuals in the medical field who have to worry about losing their source of income due to IRS debt. In some states, any professional license can be suspended or restricted.

Protect Your Career

Individuals who work in fields requiring licensure should contact a tax debt lawyer as soon as the Internal Revenue Service reaches out to them about a problem with their taxes. Addressing issues before they escalate is essential to avoid a visit from an IRS agent.

Having a suspended or restricted license doesn’t only impact your ability to practice; it can damage your credibility with your patients. In addition, patients are not likely to be sympathetic to the extenuating circumstances that caused you to lose your licensure, so you’ll want to work with a lawyer to get your license reinstated as quickly as possible or, ideally, avoid a suspension altogether.

Anyone Can Have Back Taxes

Getting behind on your taxes is easy to do, which is why all demographics of people fall into tax trouble on occasion. For example, an individual who works as an independent contractor may forget to make quarterly tax payments.

Even a taxpayer who receives a regular W-2 may miss filing a tax return if an unexpected life event occurs. Many taxpayers don’t realize they have delinquent taxes until they receive letters informing them that the IRS will begin collection efforts if they do not resolve their unpaid taxes. 

The Unexpected Cost of Unpaid Tax Debt

Finding out that the IRS can revoke your professional license or prevent you from being able to renew your license if you owe back taxes comes as a shock to many medical practitioners. The IRS usually only resorts to professional license suspension if other efforts to get an individual to pay taxes have been unsuccessful.

The IRS will give you ample chances to address your issues before suspending your license, but you want to pay your debt before your tax issues impact your career. There are actionable options for fixing even the most daunting tax issues. Still, you’ll want to seek professional help immediately to avoid having your ability to practice affected by your debt.

Protect Your Professional License 

Since explaining license suspension to patients and clients can be embarrassing, you’ll want to seek tax resolution services before you lose your professional license. Your tax attorney will help you establish a payment plan and work to get your license reinstated if it has already been suspended.

Your Passport and Driver’s License May be at Risk

In cases where a taxpayer has a seriously delinquent tax debt, the IRS may take their passport. Some states even allow the IRS to suspend your driver’s license along with any professional licenses you hold. 

Preventing the Suspension of Your Professional License

Taxpayers who cannot pay their taxes on time must work with the IRS and a tax resolution attorney to find a solution. Your attorney can advise you which option fits your circumstances best.

Installment Agreement

Installment agreements allow you to pay off your debt through a payment plan instead of all at once. After you have an installment agreement with the IRS, you will no longer face the possibility of losing your professional licensure or driver’s license (if applicable). As long as you pay the agreed-upon amount at the appropriate intervals, you won’t have to worry about wage garnishment, bank levies, or personal property liens.

Making an Offer in Compromise

Securing an offer in compromise is challenging because you must prove that you cannot pay your tax bill despite your best attempts. When granted, an offer in compromise lowers the total amount you owe. However, the IRS hesitates to give these as they believe most taxpayers can pay their tax debts. 

What to Expect From the Collection Process

The process of motivating delinquent taxpayers will start with sending a letter informing the taxpayer of the amounts owed. Although you may be tempted to ignore these notices, don’t just throw them away.

If you find the experience of opening up your mailbox to a letter from the IRS stressful, imagine how much more unpleasant it will be when an IRS agent appears on your doorstep. Instead, your best course of action is to agree to a proactive payment plan to avoid unwanted penalties and fees.

Potential For Seizure

Unlike some problems, you can’t ignore the IRS and hope they disappear. Taxpayers not actively communicating with the IRS regarding their debt will place their assets at risk: even their bank accounts. If you do not respond to this initial collection action, you may have your bank accounts seized or a lien placed on your personal property. 

Take on the IRS With a Tax Attorney

Trying to avoid paying the IRS will only exacerbate your tax troubles. To avoid having your situation escalate to the point where your professional license is at risk, contact an attorney as soon as the IRS communicates with you regarding your failure to pay or inform you that you’ve been selected to have your taxes audited.

Don’t let your failure to pay your tax liability result in a license suspension and the inability to practice. Instead, schedule a confidential consultation with Damiens Law Firm, PLLC, at (601) 957-9672.