Can I Lose My Professional License Because of Unpaid Taxes in Illinois?

 Posted on August 18, 2022 in Medical License Defense

 Our Illinois professional license defense law firm has written many blog posts regarding the types of behaviors and activities that can result in the suspension of a professional license, including insurance fraud, substance abuse, and criminal convictions. But there are also other reasons why the state may take action against your professional license that you may not realize. One of those reasons is if you owe unpaid income taxes to the state of Illinois.

Actions by the Illinois Department of Revenue (IDOR)

Under Illinois law, the majority of residents – with some exceptions – are required to file a state income tax return. Businesses are also required to file state income tax returns, including medical offices and other healthcare facilities.

Your tax return will determine whether or not you owe taxes or if you are entitled to a refund. If you owe the state money but fail to pay when you send your tax return in, the IDOR will send you a bill for the amount you owe. That bill will also show the penalty and interest the state is charging you for not paying your taxes on time.  

That notice will also have a due date and if you fail to pay your taxes or set up a payment arrangement with the department by that date, it will likely begin collection activity against you. This can include garnishment of wages, liens, and asset seizure. This activity can also include action against your professional license.

Notification from the IDFPR

When the IDOR refers an unpaid tax issue to the Illinois Department of Financial and Professional Regulation (IDFPR), the agency may or may not send you a warning letter before they send you an Order of Suspension regarding your professional license. Once you receive that Order of Suspension, you have 60 days before your license will be suspended.

It is critical not to ignore this order. If you are unable to resolve all of your outstanding tax issues – including submitting any unfiled returns and paying all outstanding tax debt or setting up a payment plan for that amount – within that 60 days, then your attorney will need to file a hearing request with the IDFPR in order to get that 60 days extended. If granted, the extension will give you time to work with the IDOR while still keeping your professional license. An Illinois professional license attorney can help you take the necessary steps to prevent you from losing your license. 

Contact a Chicago, IL Professional License Defense Attorney

If you are having tax issues and are facing the loss of your medical, nursing, or other professional license, do not delay in contacting The Law Offices of Joseph J. Bogdan, Inc. to meet with one of our dedicated Illinois professional license defense lawyers. Time is of the essence, so call 630-310-1267 to schedule a confidential consultation today.

Sources:

https://www2.illinois.gov/rev/individuals/Pages/collection.aspx

https://www2.illinois.gov/rev/research/taxinformation/income/Pages/corporate.aspx