Academy of Chiropractic Personal Injury & Primary Spine Care Program
Quickie Consult 11
From the Desk of Dr. Mark Studin
Academy of Chiropractic
Preamble: Many of the issues I bring to you are very small, yet each issue is just that, an issue. If you take care of the small issues, then you will be able to build and more importantly, focus on the bigger issues...a larger practice and more family time.
Liens Not Paid & Tax Deductions
In response to Quickie Consult #10 where I discuss liens that are not paid and being able to deduct the loss on your income tax, some of you wrote that you didn’t think that it could be deducted in your state. I can’t help you locally, but the IRS has a provision to protect against specific bad debt and according to a tax expert in the field of medicine, this qualifies as a deduction. Meaning, if you have a documented case where the lawyer does not pay your lien, it can be a deduction.
IRS Regulation 1.166-5[b}
IRS Regulation 1.166-6
These are the sections of the IRS code that allow you to take the deductions. Pass them to your accountant.
Reg.1.166-5[b} and Reg.1.166-6 only work if this is a bad business debt that cannot be collected.
PLEASE TAKE FURTHER NOTICE: CONFIDENTIALITY AND PROPRIETARY INFORMATION NOTICE: This email including attachments is covered by the Electronic Communications Privacy Act (18 U.S.C. 2510-2521) and contains confidential information belonging to the sender. Nothing contained in this message or in any attachment shall constitute an Electronic Signature or be given legal effect under 44 U.S.C. 3504 Sec. 1707. The information is intended only for the use of the individual or entity to which it is addressed. If the recipient of this message is not the intended recipient, you are at this moment notified that any unauthorized disclosure, dissemination, distribution or reproduction of this message or any attachments of this communications is strictly prohibited and may be unlawful. If this communication has been received in error, please notify the sender immediately by return email, and delete or destroy this and all copies of this message and all attachments.