Did you know that dental practitioners are among the most over-taxed people in America, with research showing that around 95% are overpaying their taxes by 10 to 50%? They also rank highly among those who voluntarily pay more tax than they are required by law to pay, and this is usually because their tax professional is simply not doing their job properly.
The tax system seems hell bent on forcing dentists to pay more tax than they are legally required, squeezing then dry financially, and along with decreasing insurance reimbursements and scandalous PPO antics, dentists continue to pay more in taxes than many other professionals. Of course, most dental practitioners use the services of accountants and CPA’s who doubtless claim to b their most trusted advisors, but in many cases, they are simply letting them down. That isn’t to say that there aren’t any accredited, honest and loyal accountants and CPA’s working on behalf of dentists out there, because there certainly are, but it should be your responsibility to ensure that they are working for you in the best way possible.
If you’re a dentist, perhaps you’re acutely aware that you pay more in taxes than you need to, but might not know who to turn to for advice and guidance? Many CPA’s and accountants who claim to specialise in the dental industry, tell their clients that there is nothing they can do to help them, or advise them to purchase life insurance policies which are costly and only provide dentists with minimal tax benefits.
However, it’s not all doom and gloom, and with proper planning and the use of tax reduction strategies, the dire straits many dental practitioners find themselves in, need not be a permanent one. Finding an honest and hard-working tax professional to represent you and your business, is not impossible, but you need to be on your guard.
What is the solution for over-taxed dentists?
Minimizing the tax burden that dental practitioners are forced to bear, is what becomes key. Proactive tax planning and careful, detailed strategizing using an efficient accounting system, continuous monitoring of practice income and expenses, along with the implementation of IRS- approved and court-tested strategies, can all help reduce the burden of taxes. An accountant or CPA with your tax interests at heart, will work hard to help you use advanced tax saving strategies and IRS approved court-tested techniques to minimize your tax burden, and with a little research you will find these in your locality.
Always conduct thorough research when trying to find an accountant or CPA to help you with your taxes, and while many dentists continue to overpay, that need not apply to you.