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How 1099s Caused the Dentist Pain

October 1, 2021

To get my complete, FREE article
with all the details…

Seven R. Olmos DDS made a terrible mistake. One that I hope you never make.

He failed to file a tax return.

How did Dr. Olmos make such an obvious error?

Well, everybody knows that failing to file a tax return is like waving a red flag in front of a bull.

So how did Dr. Olmos, a sophisticated taxpayer, mess up?

Let’s drill down and take a look at what went wrong.

  • Dr. Olmos resided and practiced in Niles, Ohio.
  • For one year the doctor ran his practice in La Mesa, California.
  • Dr. Olmos failed to file a tax return for that single year in California.

That’s when his huge mistake hit the fan.

Here’s what happened when the IRS
noticed that his return was missing.

The IRS used the 1099s issued to Dr. Olmos by insurance companies, and the checks from them that he cashed, to spot the problem.

As a result, The IRS identified…

  • $43,886 in taxes due
  • Issued a $10,072 penalty for failure to file
  • Plus, a $1,754 penalty for failure to pay estimated taxes. Ouch!

What’s the point of all this?

To remind you of three important facts…

Fact #1: The 1099s report your income

Fact #2: The IRS matches the 1099s to your tax returns

Fact #3: Missing 1099s starts up the IRS’s audit process. This is the pain Dr. Olmos inflicted on himself… and without anesthetic!

To get the full details of Dr. Olmos’s trial by fire…

CLICK HERE and read the full article titled…

“How 1099s Caused the Dentist Pain”

Filed Under: Audits, Filing tips, Form 1099, Tax Planning

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