Tax Compliance Made Easy

HOW TO HANDLE ALL THESE TAX FORMS

As a practice owner, now is the time that you will be receiving lots of tax forms and issuing lots of tax forms.

RECEIVING TAX FORMS

The IRS has dramatically increased the requirements for filing tax forms over the last few years in an effort to close the tax gap (those people working “under the table”). Therefore, you will be receiving a ton of forms both electronically and by mail over the next month. Here are some hints to help you gather all the required tax documents that you will need to file your tax return:

  • Determine if it is for the practice or you personally. The form will list the EIN or SSN. Once that is determined, separate the forms into a practice pile and a personal pile.

  • Don’t ignore those emails that say IMPORTANT TAX INFORMATION. Most banks, mortgage companies and even charities have had you opt into electronic delivery so you will need to log-in and download your tax forms.

  • The information will drip in over the next month, so have a system (electronic or with paper) to save all your documents in one place.

  • Submit your completed organizer and ALL your documents at one time to your tax professional. The last forms you will receive are your investment statements, which will likely be available in mid-February.

  • The practice will be receiving a 1099-NEC from every insurance company you worked with during the prior year. You should review those for reasonableness and submit to your tax professional to prevent matching errors.

ISSUING TAX FORMS

The other side of the tax form coin as a practice owner is your requirement to issue tax forms to employees and contractors. Here are some tips to get those issued correctly and timely:

  • The deadline to mail or electronically deliver the W-2 Forms to employees and the 1099-NEC Forms to contractors is January 31st.

  • Electronic-only delivery is available only if the employee or contractor has opted in.

  • If you paid a contractor over $600 for services during the prior year, you must file a 1099-NEC for that contractor.

If all this seems like lots of paperwork and not the dentistry that you love, consider becoming a JNG Advisor member and letting us take care of all these filing and compliance issues for you.

Jeff Gullickson