January 29, 2013

Tax Services

 Dentist Tax Planning and Preparation

Dentist Tax Planning and Preparation

We are an accounting firm providing dentists tax planning and preparation services. Tax planning for dentists is key to reducing tax liability for dentist earnings. Tax planning for dentists allows the dentists to take actions to reduce tax liability through a number of ways by itemized deductions, increasing retirement contributions (SEP, SIMPLE, 401k, IRA), auto expenses, timing the purchase of equipment, etc. We can build a customized plan for dentists to meet their unique situation.

Individual tax returns have steadily grown more complex over the years. You should not have to deal with it all alone.

Businesses – Tax Services for Dental Practices

Dental practices are typically setup as pass through entities such as S-Corporations, Partnerships or LLCs. Not only do these entities have to file an annual federal tax return with the Internal Revenue Service (IRS), they are also required to file a number of other tax returns / forms on a quarterly or monthly basis. Non-compliance and/or incorrect filings can result in huge penalties and interest. Some of the returns are required to be filed on the state level and others on the federal level.Here is a list of the tax returns and periodic filings required for most entities:

  1. Federal Income Tax Return for the Business
    1. Corporate Tax Return (Form 1120 or 1120S)
    2. Partnership Tax Return (Form 1065)
    3. Schedule C as part of Individual Tax Return
  2. Franchise Tax Return
  3. Sales and Use Tax Return
  4. Business Personal Property Rendition of Taxable Property
  5. Payroll Tax Returns
  6. Other filings:
    1. File Forms 1099
    2. File Forms W-2 and W-3

We have the experience, knowledge, qualification and resources to meet the tax needs of these entities and related individuals. We provide the following tax preparation services:

Corporate Tax Returns

Corporate tax returns are filed for entities that have been formed as a C-Corporation, S-Corporation, LLC which has elected to be taxed as a corporation. Corporate tax return are filed yearly and typically include the previous calendar year. Due date to file corporate tax returns is 2 and a half months after year end or March 15th for companies with calendar year end of December 31.

Partnership Tax Returns

Partnership tax returns are filed for entities that have been formed as a partnership or an LLC with multiple members. Partnership tax return are filed yearly and include the previous calendar year. Due date to file partnership tax returns is the 15th day of the fourth month after year end or April 15th for calendar year end.

Schedule C as part of Individual Tax Return

If the business owner elects to treat a single member LLC as a sole proprietorship for tax purposes, the business income is reported on Schedule C with the owner’s individual tax return. The due date to file an individual tax return is April 15 of every year.

Franchise Tax Returns

Texas franchise tax is imposed on each corporation that is chartered in Texas. For franchise tax purposes, the term “corporation” also includes a bank, state limited banking association, savings and loan association, limited liability company, professional limited liability company, a corporation that elects to be an S corporation for federal income tax purposes, and a professional corporation. Texas Franchise Tax is typically due on May 15 of every year.

Sales and Use Tax Returns

Sales tax is collected when dental practices sell items to patients. This is not the case for a number of practices. However, if applicable, it is imperative to file sales tax return and remit the sales tax collected to the state on a timely manner to avoid penalties and interest.

Use tax is assessed by the state on items that the purchaser did not pay sales tax on. This could be due to various reasons including purchasing items online, purchases from out of state, etc. The purchaser is liable to pay Use tax on these items. Again it is imperative to file Use tax return and remit the tax to the state on a timely manner to avoid penalties and interest.

Business Personal Property Tax Rendition

Business Personal Property Tax Rendition is filed with the county the business is located in. A number of new business owners are not aware of this until they are informed by their accountant or receive a letter from the county charging taxes plus penalties. The due date for rendition for counties in Texas is April 15th.

Payroll Tax Returns

We recommend most dental practices to use a payroll service. However, if a client prefers to keep payroll in-house, we can prepare quarterly payroll reports/payments:

  • From 941
  • Federal Unemployment Payments
  • State Unemployment Reports

IRS Letters

We can help you respond to IRS Letters, IRS audits and other IRS related issues.

Visit our Accounting Services Page

Accounting services provided to dental practices comprises of setting up chart of accounts, recording transactions in the accounting software to proper categories such as assets / liabilities / income / expense / etc. We prepare balance sheet, profit and loss statement and other reports based on the information provided by our clients. Read more…