Lawyers and Tax Debt - Ways to Get Rid of and Prevent Tax Debt

Liar Liar: Surprise! It turns out Lawyers have been-Have filed and paid your taxes on time for the past
caught lying. Who would have thought it? On a more5 years
serious note, the IRS does pay close attention toPrevent Debt:
Tax Returns filed by Lawyers and even accountants.File on Time: Lawyers are often busy. But there's no
So if you're a lawyer, pay special attention to whatexcuse for not filing your taxes on time. You know
you do. Because you are being watched.they are due every year. Failure to file penalties are
Get Rid of IRS Debt:5% per month. So if you don't want your debt to
Installment Agreement: If you can pay off the wholesky rocket, file your taxes on time.
amount you owe in at least three years, consider anGetting Greedy: IRS auditors keep an eye out for
Installment Agreement. If you qualify, you canpersonal expenditure deducted as "business
actually pay your debt in easy monthly payments.expenses." Lawyers have been caught writing off
But there are rules you have to comply with:home remodeling and even new yachts as "business
- You have to file your taxes on time every yearexpenses." And don't try to claim that the yacht is
- You cannot miss a paymentfor your business because its "good PR," either.
- You have to pay off your debt in the agreed uponMind the Law: Being a lawyer is hard work. In fact,
time period.surveys show Lawyers show some of the lowest
In order to qualify for an Installment Agreement, Youjob satisfaction out of all college graduates. But you
must:are used to filling out loads of paperwork. What's one
-Fill out form 9465 "Installment Agreement Request."more form to fill out? File your tax returns. File them
-It helps to fill out form 433-A "Collection Informationon time. And don't lie on your tax returns. The IRS
Statement for Wage Earners and Self-Employedwill find out, and when they do, IRS debt will soon
Individuals"follow.