5 Tax traps physicians should avoid

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With Tax Day on the horizon, don’t fall into these specific traps.

Our last installment provided some details and basic rules every doctor should know about tax planning, including who is responsible for the information on your tax return, details about what income you have to report, and a look at the sales techniques promoters of tax evasion use to get you to pay for their services. When it comes to clarifying questions of tax law and what crosses the line from legal tax avoidance to illegaltax evasion, I always start with the I.R.S., which provides the following detail about these specific scams that the Office of Promoter Investigations (OPI) is prosecuting participants and promoters of abusive tax avoidance transactions for using. 

"We are stepping up our enforcement against abusive arrangements," said IRS Commissioner Chuck Rettig. "Don't be lulled into these shady deals. The IRS recommends that anyone who participated in one of these abusive arrangements should consult independent counsel about coming into compliance."

These aggressively marketed abusive arrangements wrap up the IRS's annual "Dirty Dozen" list and include the following red flags: