Tax Projections is the process of estimating income and deduction for a dental practice owner from various sources, taking deductions as allowed per IRS rules and arriving at a taxable income and tax amount.
A tax projection is based on a set of assumptions.
We start with the income and deduction information from your prior year financial statements to arrive at an estimated income for your current year. We adjust for anything we know about the current year which includes changes in income, tax rates, potential deductions, etc.
We also include, other typical income sources which include spouces' salary, interest/dividents, capital gains.
Then, we calculate what your taxes would be based on those conditions.
We perform these calculations in the October/November timeframe so that the dentist has a good estimate of their tax bill for the current year.This also allows the dentist tax payer to apply any tax strategies, if they want.Dental practices are typically setup as pass through entities such as S-Corporations, Partnerships or PLLCs. 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 penalties and interest. Some of the returns are required to be filed on the state level and others on the federal level. Filing requirements differ based on business structure and state. Here is a list of commonly required tax returns and periodic filings for most entities:
(Filed by the payroll service provider)
Accurate and timely information is key to all tax services. Therefore, we provide these services only to dental practice owners who are bookkeeping clients.