AI May Be Clever, But Not for Your Finances

Artificial intelligence gets a lot of hype. It can generate quick answers, summarize complex topics, and even pass the INBDE that kept you up at night with flashcards. But when it comes to your personal finances or the financial health of your dental practice, it’s a risky gamble.

According to the recently released Access to Professional Services report, 22% of Americans who turned to AI for medical advice ended up with wrong information, and 19% actually lost money after following its financial recommendations. Even more surprising, 51% of consumers admit they already use AI for financial advice, while another 27% are considering it.

Let’s pause on that for a second. Nearly one in five people lost money because they trusted an algorithm with their personal finances, and yet more than half are still doing it. That’s not efficiency; that’s wishful thinking.

Why AI Isn’t Enough

Here’s the problem: AI doesn’t know you. It doesn’t know your goals, your risk tolerance, your family obligations, or the years you’ve poured into building a dental practice. It just pulls from the internet, a place that, let’s be honest, isn’t exactly known for nuance or universal accuracy.

Sure, AI can spin out generic advice that looks good on the surface. But when the stakes involve your livelihood, your retirement, or the future of your practice, “generic” is the last thing you need. What works for a stranger online may not work for you, and the cost of getting it wrong can be steep.

The Case for Human Advice

Working with an experienced advisor isn’t about paying for information; it’s about paying for interpretation. At Edwards & Associates, we help you sort out what matters in your unique situation, anticipate problems before they derail your plans, and adjust strategies as life (and the market) changes. That’s something no algorithm can do, no matter how sophisticated it seems.

At the end of the day, your financial future deserves more than cut-and-paste advice. Don’t leave it in the hands of a machine. Work with people who know you, understand your practice, and can help you chart a path with confidence.

Don’t Let Bad Tax Advice Drill Into Your Finances

Dentists are no strangers to misinformation. Patients walk in with something they read on the internet about whitening hacks or miracle cavity cures, and you have to set the record straight. The same thing is happening with taxes, only the consequences can be far more expensive.

The IRS recently sounded the alarm about a wave of misleading tax tips spreading on social media. These aren’t just minor misunderstandings; they can lead to audits, rejected claims, and stiff financial penalties. As James Clifford, Director of Return Integrity and Compliance Services, explained: “People who follow this advice could end up with rejected claims and a penalty of up to $5,000 in addition to any other penalties that might apply.” So far, the agency has imposed more than 32,000 penalties, costing taxpayers more than $162 million. That’s a high price to pay for taking advice from a TikTok video.

It’s easy to see how these schemes hook people. Who wouldn’t want to believe there’s a hidden credit that could reduce your tax bill? But just like those too-good-to-be-true dental “hacks,” tax shortcuts you see online can do more harm than good.

The Lure of Fake Deductions

The most common scams promise credits that most taxpayers simply don’t qualify for. A few of the recent offenders include:

  • Fuel Tax Credit: This is real but reserved for very narrow uses like farming equipment or off-highway machinery. Most dentists driving to and from the office don’t qualify.
  • Pandemic-Era Leave Credits: Any claims for sick or family leave credits expired well before 2025 and are no longer available to most taxpayers. 
  • Employee Retention Credit (ERC): Designed for businesses hit by pandemic-related disruptions, but it has also expired. There were so many people filing under questionable circumstances that the IRS permanently paused new claims. 
  • R&D Tax Credits: Unless you’re inventing new dental technology in your spare time, you are very unlikely to qualify for this credit. Practice improvements will not count as “research and development.”
  • Charitable Deduction Scams: You must donate to IRS-qualified organizations to claim this deduction. Inflating donations or picking unqualified groups won’t fly, even if online promoters say otherwise. If you are unsure whether a nonprofit qualifies, we can help verify it for you. 

For dental practice owners and associates alike, falling for one of these “strategies” doesn’t just delay your refund; it can also result in penalties that eat into your hard-earned income.

Why Dentists Are Particularly at Risk

Running a practice or working as an associate often means long hours and little time to dig into the fine print of tax law. It’s tempting to lean on what you see shared by colleagues or on social platforms. But what worked (or appeared to work) for someone else could land you in serious trouble. Just as every patient case is different, every tax situation is unique.

Another danger? Unscrupulous tax preparers. Some promise outsized refunds, but don’t sign the return themselves. This is a huge red flag that you might be working with a “ghost preparer.” If the IRS comes calling, you’ll be left holding the bag. Others may use your information for identity theft.

The Case for Professional Guidance

The reality is simple: tax law is complex, and dentists face unique challenges when balancing personal and practice-related finances. From equipment depreciation to managing associate pay, your situation is nothing like the “average” taxpayer’s. That’s why advice pulled from Facebook or a message board is more likely to cause problems than provide solutions.

When you work with a qualified CPA who knows dentistry, you get:

  • Tailored advice that factors in your practice’s structure, your long-term goals, and your family’s financial picture.
  • Protection from penalties that could far exceed any short-term gain from a dubious deduction.
  • Accountability and peace of mind because your return is signed, accurate, and backed by someone who will stand by you if questions arise.

Stay Smart, Stay Safe

Just like patient care, your finances deserve expertise, not quick fixes. The internet may be full of “hidden” tax tips, but the only truly reliable path is working with a professional who understands both the IRS and the business of dentistry.

Don’t let misinformation eat away at your bottom line. If you’re unsure about a credit, deduction, or strategy you’ve heard about online, check with us before making a move. We are happy to help!

How IRS Staffing Cuts & System Strain Impact Taxpayers

Most dentists don’t spend much time thinking about how the IRS runs until something goes wrong. But when staffing levels are cut and outdated technology struggles to keep up, the ripple effects land directly on taxpayers and their advisors.

We saw this vividly during the COVID-19 years: mailrooms backed up, phone lines overwhelmed, and millions of paper-filed documents literally shredded. Unfortunately, even today, the IRS is still working with decades-old computer systems and a shrinking workforce. That combination makes routine tax administration harder than it should be, and it shows.

Longer Waits and Slower Processing

For dental practice owners expecting refunds, requesting transcripts for a business loan, or trying to resolve a tax notice, patience will be required. Reduced staffing means:

  • Refund delays can stretch for weeks or months beyond normal timelines.
  • Loan application slowdowns when lenders can’t get timely IRS transcripts to verify income.
  • Tax notices drag on, with responses and resolutions sometimes taking months or years.

Fewer Ways to Reach Real Help

Calling the IRS has never been easy, but reduced staff only makes it worse. Hold times of 30–60 minutes used to be considered long; now, taxpayers often face dropped calls or phone lines that simply aren’t staffed.

On the paper side, even though electronic filing has expanded, the IRS still requires many documents to be mailed. When those pile up, processing lags, and sometimes correspondence goes missing altogether. That leaves taxpayers in limbo, waiting for updates that may never come without repeated follow-ups.

The Cost to Small Business Owners

For busy dental professionals, the biggest hidden cost of IRS delays is time. When an issue drags on, accountants and advisors have to chase down answers, resend documents, and make repeated attempts to get clarity. That extra effort translates into higher costs for taxpayers, especially when something simple gets stuck in the system.

Why This Matters for Dental Practices

Dental practices often need timely IRS documentation to move forward with loans, refinancing, or business expansions. Delays can disrupt cash flow planning and add stress to already complex business decisions. And when the IRS is slow to process credits, refunds, or responses to tax notices, it ties up both money and attention you’d rather devote to your patients.

Looking Ahead

Ideally, government leaders would reduce tax complexity and restore IRS staffing and systems so that taxpayer services remain effective. However, under current plans, the IRS is facing deep operating and enforcement cuts, with no clear indication that Congress will reverse course anytime soon. It remains crucial for taxpayers, especially small business owners, to prepare for extended response times and reduced service levels:

  • File electronically whenever possible.
  • Keep thorough records in case correspondence is misplaced.
  • Build in extra time for loans or financial transactions that require IRS transcripts.

As your advisors, we’ll keep monitoring IRS developments and advocate for solutions that make the system work better. In the meantime, know that we’re here to help you navigate delays and reduce stress wherever possible.

Why Remitting Payroll Taxes on Time Is Critical

As a dental practice owner, your focus may be on patients, but the IRS requires just as much attention to payroll taxes. These aren’t just another line item; they’re legally classified as “trust fund taxes.” That means when you withhold federal income tax, Social Security, and Medicare from your employees’ paychecks, you’re holding those funds on behalf of the government. In the eyes of the IRS, failing to send them in promptly is more than a mistake. It’s theft, and the consequences include fines, criminal charges, and even prison time.

Real-World Cases: Payroll Tax Non-Compliance Comes at a High Cost

The IRS has made it clear that no business owner is too small or too specialized to be held accountable. Here are just a few examples.

  1. Nevada Dentist: A licensed pediatric dentist pled guilty to failing to remit payroll taxes, proving that even small dental practices face criminal enforcement.
  2. Virginia Business Owner: A Chester, VA, business owner was sentenced to two years in prison for withholding payroll taxes from employees’ wages but failing to send them to the IRS.  
  3. New Hampshire CEO: A tech company CEO in New Hampshire withheld but never paid millions in payroll taxes between 2014 and 2021. He received a 2½-year sentence and had to pay restitution exceeding $639,000. 
  4. Florida Payroll Provider: In an example of someone who definitely knew better, a payroll company owner diverted client tax funds for personal use and was sent to prison for more than four years. 
  5. Reality TV Personality: Peter Thomas, of The Real Housewives of Atlanta, was sentenced to 18 months and ordered to repay $2.5 million for failing to pay employment taxes across several businesses.  

Why This Matters for Your Practice

Payroll taxes are one of the most serious obligations you carry as a business owner. Even if you delegate payroll tasks to a staff member, accountant, or outside service, the IRS still holds you personally responsible.

Some owners convince themselves they’ll “borrow” from payroll tax funds to get through a tough month. But even a short delay counts as willful evasion in the eyes of the IRS. The result? Mounting penalties, damaged reputations, and, in the worst cases, criminal charges.

For dental practice owners already juggling patient care, staff management, and overhead costs, the added risk of payroll tax missteps is too great to ignore.

How to Stay Compliant

For most dental practices, the simplest and safest option is to partner with a reputable payroll provider, like ADP, that takes on the legal responsibility of calculating and remitting payroll taxes on time and in the correct amounts. Be sure to confirm that if the IRS ever issues a payroll-tax notice, they will handle the response at no additional charge. That shifts the risk away from your practice, so you and your team can focus on running the business and caring for patients, not trying to master the complexities of payroll law. And considering that IRS fines can be steep, as we established above, the cost/benefit ratio – and ability to sleep well at night – makes sense for most practices.

If you decide not to outsource, you’ll need to put strong guardrails in place to stay compliant:

  1. Fund immediately – Treat payroll tax liability as untouchable. Set the money aside as soon as payroll runs.
  2. Know your schedule – IRS deposit rules vary. Some practices remit monthly, others semi-weekly. Understand which applies to you.
  3. Automate where possible – Payroll software can reduce the risk of human error, but it won’t assume legal responsibility the way a provider like ADP does.
  4. Keep funds separate – Always store payroll taxes in a dedicated account so they are never mixed with operating funds.
  5. Act fast if you fall behind – The IRS offers options like installment agreements and voluntary disclosure, but only if you address problems quickly.

Remitting payroll taxes on time isn’t optional; it’s a legal non-negotiable. Whether you rely on a provider or manage it in-house, the key is to treat these funds as sacred. For many practice owners, outsourcing is the easiest way to eliminate the risk and sleep better at night.

If you’re ever unsure about your payroll tax process or if you’ve already fallen behind, reach out to us immediately. The cost of prevention is always lower than the cost of IRS enforcement, whether measured in dollars, reputation, or even freedom.

How Hiring Your Children Can Cut Your Tax Bill

With the 2025 tax-planning season approaching, we know that many of you are looking for smart, legal strategies to reduce your tax burden. One option that’s easy to overlook but made more attractive under the One Big Beautiful Bill Act (OBBBA) is hiring your children.

How OBBBA Makes Hiring Your Kids a Smart Tax Move

The OBBBA permanently eliminated the dependent exemption but raised the standard deduction for single taxpayers to $15,750 in 2025 (up from $15,000 in 2024, with annual inflation adjustments). This change allows your child to earn up to $15,750 in W-2 wages tax-free if they have no other income, since the standard deduction fully offsets those earnings.

For dental practice owners, this opens the door to both family and practice benefits, as long as you pay a fair W-2 salary for legitimate, documented responsibilities. Common examples include managing your social media (and in some cases serving as models for those campaigns) or coordinating community events, but age-appropriate work like filing, office organization, janitorial work, or other support tasks may also qualify.

Here’s what this strategy can mean for you:

  • Avoid Federal Income Tax for Your Child – As long as their earnings stay within the standard deduction, they owe nothing in federal income tax.
  • Potentially Enjoy Payroll Tax Savings – If your practice is a sole proprietorship or a partnership with both parents as partners, wages paid to children under 18 are also exempt from Social Security and Medicare taxes.
  • Lower Your Own Taxable Income – Wages paid to your child are deductible to the practice, reducing taxable income and effectively shifting dollars into a zero-tax bracket.

Just like any other employee, your child must actually perform the work, and you’ll want to maintain job descriptions, timesheets, and payroll records to demonstrate the arrangement is legitimate.

Please Note: To use this strategy, children must be claimed as dependents on your tax return. The biggest payroll tax savings apply when they are under 18. Children 18 and older can still be employed, and their wages remain deductible, but payroll taxes will apply.

Hiring Your Kids: More Than Just Tax Savings

Hiring your children isn’t just about reducing your tax bill; it can also give them valuable work experience and bring fresh energy to your practice’s marketing and community engagement. With the right documentation and planning, it’s a compliant strategy that supports your practice, your family, and your long-term tax planning.

If you’d like to explore whether this strategy makes sense for your practice, our team is here to help during your upcoming tax-planning session.

What the Latest Federal Tax Bill Means for Dental Practices and Their Owners

After months of debate, Congress has passed an enormous budget reconciliation bill with a wide range of tax changes affecting small businesses and individual taxpayers alike. While the headlines focus on sweeping economic measures, many of the provisions could directly shape how dental practices operate, invest, and plan ahead.

If you own or manage a dental practice, here are the highlights you should know and steps you might consider in response.

New Incentives for Equipment and Technology Investments

One of the most significant changes is the return of full expensing for major purchases. If you’re planning to upgrade your equipment, invest in advanced imaging technology, or modernize your administrative systems, the revised Section 179 rules will allow you to deduct up to $2.5 million of qualifying purchases in the year you buy them.

Previously, deductions had to be spread out over time, but the accelerated write-off can now provide immediate tax relief and help improve cash flow. Keep in mind that if your total qualifying purchases exceed $4 million, the deduction begins to phase out.

More Room to Deduct Interest Expenses

If you’ve taken out loans to renovate your office, open a second location, or acquire another practice, the rules for deducting interest payments just became more favorable. The new law allows interest deductions to be calculated using EBITDA, earnings before interest, taxes, depreciation, and amortization, rather than the narrower EBIT measure.

This adjustment increases the amount you can deduct each year, which can be especially helpful for practices carrying debt from growth or equipment financing.

Expanded Research and Development (R&D) Deductions

While many dental practices don’t think of themselves as research businesses, certain investments – like developing proprietary patient education materials, implementing new digital workflows, or testing innovative service models – can qualify for R&D deductions. Under the bill, smaller businesses with less than $31 million in gross receipts (which is most dental practices) can immediately deduct eligible R&D costs rather than amortizing them over time. This change rewards innovation and may help offset the expense of improving patient care.

QSBS Exclusion Returns for C-Corporations

If your practice is organized as a C-corporation and you’re considering selling your business in the next few years, take note of the revived Qualified Small Business Stock (QSBS) exclusions. Owners who meet certain requirements, including holding their shares for at least five years, may be able to exclude up to 100% of gains from federal tax when they sell. This could translate into substantial tax savings at the time of exit or succession planning.

SALT Deduction Cap Temporarily Increased

The bill raises the cap on state and local tax (SALT) deductions to $40,000, with a gradual phaseout beginning at $500,000 of income. However, this relief is temporary; the cap is scheduled to revert to $10,000 in 2030. For dental practice owners, especially those operating pass-through entities, this creates a narrow planning window. It’s a good time to reevaluate whether the entity-level SALT workaround remains effective and how to best optimize deductions while the higher cap is in place. Strategic tax planning now can help minimize liabilities before the cap drops again.

Personal Tax Changes That Matter to Practice Owners

While these business provisions can influence practice finances, there are also personal tax updates to be aware of:

  • Expanded Child Tax Credit: Temporarily increased to up to $2,500 per qualifying child, with more flexibility in how it phases in.
  • New Deductions for Common Expenses:
    • Up to $6,000 in additional standard deduction for taxpayers over 65.
    • Interest deductions on loans for U.S.-assembled electric vehicles, up to $10,000.
    • Above-the-line deductions for overtime and tip income (though not likely as relevant for dental offices).
  • No Federal Tax on Tips: While this mostly affects hospitality workers, employees with tip income will no longer pay federal tax on it.
  • Individual Tax Rates Extended: The lower tax brackets set in 2017 are extended through 2028, helping many owners save on personal income tax.

How Your Practice Can Prepare

Navigating these changes doesn’t have to be overwhelming. Here are a few things you should consider:

  • Evaluate planned purchases of equipment and technology to optimize deductions.
  • Review financing structures to maximize interest expense benefits.
  • Assess your entity type and QSBS eligibility if a sale or transition is on the horizon.
  • Update your personal tax plan to leverage available deductions and credits.

Even though this legislation is complex, and this just scratches the surface of what it contains, it creates some opportunities to strengthen your practice’s financial position while supporting your personal goals. If you’d like to discuss how these updates apply to your specific situation, we’re here to help.

It’s Time to Do Some Mid-Year Tax Planning 

As the summer heats up, it’s not just a good time for vacations, it’s also the perfect time to check in on your dental practice’s financial health. Mid-year tax planning can help you avoid surprises at year-end and give you time to make strategic decisions that impact your bottom line.

Look at the Numbers Now, Not in December

Too often, dentists wait until the end of the year – or worse, tax season – to review their financial performance. But by now, you’ve got six months of data that can tell a meaningful story about how the rest of the year might unfold. Are collections on track? Are expenses creeping up? Did you invest in new equipment or hire additional staff?

This is the time to sit down and compare your actual year-to-date performance against your projections. If you’re tracking ahead, it may be a good time to consider purchasing equipment, increasing retirement plan contributions, or planning charitable donations. If you’re falling behind, you still have time to course-correct.

Estimate Your Tax Liability

Based on your current earnings, we can help you estimate what your tax liability might look like by year-end. This can be a critical step in determining whether to adjust your quarterly tax payments to avoid underpayment penalties or whether there’s room to invest more in your practice or your future.

Take Advantage of Tax-Saving Opportunities

Mid-year planning allows time to explore tax-saving strategies tailored to your practice. These might include:

  • Section 179 deductions for equipment purchases
  • Maximizing retirement contributions through a 401(k), SEP IRA, or defined benefit plan
  • Health savings accounts (HSAs) or Flexible Spending Accounts (FSAs)
  • Reviewing entity structure to determine if it’s still the most tax-efficient option
  • Hiring family members for legitimate business roles to reduce taxable income

Evaluate Overhead and Profit Margins

Often our dental clients are so focused on patient care that they don’t realize how much their overhead is eating into profits. Mid-year is a good time to review vendor contracts, supply costs, and staffing efficiency. Small tweaks now can lead to big savings by year-end.

Don’t Go It Alone

Tax laws change frequently, and every practice is unique. The best way to take advantage of mid-year planning is to reach out to us to gain a solid understanding of the challenges and opportunities specific to your field.

Let’s Plan Ahead Together

Mid-year is more than just a checkpoint, it’s a chance to proactively manage your practice’s financial success. If you haven’t yet scheduled a mid-year review, now is the time. Your future self – and your bottom line – will thank you.

What Dentists Should Know About Proposed Senate Tax Changes

In May, we wrote about what dental practice owners should know about the tax bill. Now a new round of tax proposals is making its way through the Senate that include some significant shifts that could impact both your personal finances and how you manage your dental practice. While these proposals are still under debate and will continue to evolve, it’s worth taking a look at a few areas that may affect dentists more directly than others.

Here’s a breakdown of some of the key provisions and what they could mean for you:

  1. State and Local Tax (SALT) Deductions Could Shrink: The proposed Senate version would lower the cap on SALT deductions to $10,000, a significant reduction from the $40,000 limit in the House bill. This change could limit deductions for dentists with higher incomes, significant property taxes, or multiple real estate holdings. If you typically itemize deductions, this is a key detail to factor into your tax planning.
  2. Changes to Business Tax Breaks May Help Practices That Invest: The Senate’s proposal includes some long-term benefits for business owners. If you’ve recently invested – or are planning to invest – in new equipment or technology for your practice, the proposed extension of 100% bonus depreciation could continue to be a helpful tool. The plan also preserves full deductions for research and development expenses and depreciation calculations based on more favorable interest expensing rules. Practices looking to expand or modernize may find these updates particularly beneficial.
  3. Medicaid Shifts Could Affect Patient Access: While Medicaid likely isn’t a huge part of the revenue stream for most dental practices, any policy changes that reduce access to care could indirectly affect volume in practices that serve low-income families. The proposed Senate revisions call for stricter work requirements for families receiving Medicaid, especially for parents with older children. Practices offering Medicaid or CHIP-covered services should monitor how this plays out at the state level.
  4. Bonus Standard Deductions for Seniors: If you’re approaching retirement, the Senate proposal includes a larger standard deduction for seniors, rising to $6,000. This could create a modest benefit for older dental professionals still practicing or taking retirement distributions.
  5. Adjustments to the Child Tax Credit: The Senate version also slightly bumps up the child tax credit and makes it permanent, which may help younger dentists with families. While the increase isn’t dramatic, it does provide some predictability compared to temporary measures in previous years.
  6. Be Mindful of New Payment Processing Taxes: Although not highlighted in the Senate bill, changes to how foreign investors and certain processing systems are taxed may eventually affect credit card fees and payment processors, services many practices rely on. Now is a good time to talk to your payment vendor to understand how these shifts may trickle down.

Planning Now Can Save Later

While these tax proposals are still subject to change, they offer a glimpse into where federal fiscal policy is headed. As a dental practice owner or administrator, staying ahead of these developments can help you avoid surprises, especially when it comes to deductions and business investment decisions.

Have questions about how these changes might impact your tax strategy this year or next? Our team specializes in supporting dental professionals. Let’s talk about how we can keep your practice financially strong and future-ready.

What Dental Practice Owners Should Know About the Latest Tax Bill

A new tax bill making its way through the House Ways and Means Committee could significantly impact dental practice owners.  While nothing is finalized yet, understanding what’s in the bill and what could change is the first step toward preparing for potential impacts in 2026 and beyond.

Here are some of the proposed highlights most relevant to dental practice owners:

  1. Enhanced Pass-Through Deduction: The bill would increase the Qualified Business Income (QBI) deduction from 20% to 23% and make it permanent. This would reduce taxable income for dental practices structured as S corporations, partnerships, or sole proprietorships.
  2. Increased Standard Deduction and Child Tax Credit: The standard deduction would be temporarily increased by $1,000 for single filers and $2,000 for married couples. In addition, the Child Tax Credit would rise to $2,500 per child, offering additional relief for dental professionals with families.
  3. Adjusted SALT Deduction Cap: The state and local tax (SALT) deduction cap would increase from $10,000 to $30,000, phasing out gradually for incomes above $400,000. For homeowners, especially those whose property taxes exceed $10,000, this change could allow for significantly greater deductibility.
  4. Elimination of Taxes on Tips and Overtime Pay: The bill would exempt tip income and overtime pay from federal income taxes in certain industries. While not directly applicable to most dental practice owners, it could influence compensation structures for support staff.
  5. Extended Bonus Depreciation and Interest Deductions: The bill extends 100% bonus depreciation and allows amortization and depreciation to be included in interest deduction calculations through 2029, making capital investment in technology or equipment more financially viable.
  6. Changes to Personal Deductions: The proposal would make permanent several itemized deduction limitations (such as on mortgage interest and casualty losses), eliminate personal exemptions, and simplify deduction structures.
  7. Rollback of Clean Energy Incentives: Provisions from the Inflation Reduction Act would be scaled back or phased out. Dental practices considering green upgrades, like solar panels or energy-efficient systems, may need to reassess their cost-benefit analysis under a new tax environment.
  8. End of IRS Direct File Program: The legislation would terminate the current IRS Direct File system and replace it with a public-private partnership, returning most free filing options to private software providers.

Preparing Your Dental Practice

The proposed tax bill is still in its early stages, and no immediate action is required. However, staying informed now can help you respond effectively if the legislation advances in its current form. If the bill passes as written, dental practice owners may need to:

  • Reassess business structure: Changes to the Qualified Business Income (QBI) deduction could make it worthwhile to review whether your current entity type, such as an S corp or sole proprietorship, is still the best fit.
  • Revisit compensation strategies: While the elimination of taxes on tips and overtime pay may not directly apply to dental practices, it could influence how you approach payroll, especially for administrative and support staff.
  • Consider the timing of future investments, especially for equipment or sustainable upgrades that may lose tax advantages.
  • Reach out to us with questions: Once legislation is finalized, we can help you understand the full impact on both your business and personal finances and identify opportunities to optimize your tax strategy.

What’s Next?

The bill still needs to pass the full House and then move through the Senate, where key provisions could be revised or removed. In short, the final version could look significantly different. That said, with the 2017 tax cuts set to expire after 2025, action on tax legislation is expected before year-end.

For now, the best course of action is to stay informed and prepare to plan ahead should the bill advance. As with any proposed legislation, details remain in flux, and this particular bill seems to be evolving almost weekly. We will do our best to keep you informed as updates are made public and the bill continues its journey through Congress and, potentially, to the President’s desk for final approval later this year.

If it moves forward, we’ll be here to help you understand the specifics and make proactive decisions for your dental practice.

What Dental Practice Owners Need to Know About New Federal Payment Changes

Big changes are coming to how the federal government issues payments, and dental practice owners need to be prepared. The White House has announced it will eliminate paper checks for nearly all government payments by September 30, 2025, so the U.S. Treasury has approximately six months to make the necessary adjustments. If you or your practice currently receive any federal payments by check, including tax refunds, Medicare reimbursements, or other government-related funds, it’s time to get ready for a full transition to electronic payments.

Why the Change?

The move to eliminate paper checks is part of a broader effort to improve efficiency, reduce fraud, and save taxpayer dollars. Electronic payments are faster, more secure, and more cost-effective than mailing paper checks. The Treasury estimates that moving to digital payments could save hundreds of millions of dollars annually.

How It Could Affect Dental Practice Owners

If your practice is owed a federal refund or receives any kind of government reimbursement, the payment will now be issued via direct deposit or a similar electronic method. That means:

  • No more waiting on the mail. Payments will arrive more quickly.
  • Reduced risk of lost or stolen checks. Electronic transfers are generally safer.
  • Streamlined bookkeeping. Digital payments are easier to track and reconcile.

For dental practices that rely on timely cash flow to cover payroll, supplies, or operating costs, faster access to funds can make a significant difference.

What You Should Do Now

If you haven’t already made the switch, now’s the time to update your payment preferences:

  • Set up direct deposit for IRS payments. Make sure your practice provides its correct banking information each time you file a return so you can receive any IRS refunds electronically. 
  • Check Medicare provider information. If you participate in Medicare, confirm your electronic payment enrollment is up to date.
  • Talk to your vendors. Many private insurers and suppliers are also pushing for digital payments. Updating your systems now will set you up for a smoother future.
  • Review your accounting systems. Ensure your bookkeeping processes are ready to handle incoming electronic payments efficiently.

What Happens If You Do Nothing?

If you don’t update your information, you could experience delays in receiving payments. In some cases, the government may issue payments via a prepaid debit card if no direct deposit information is available, which could add cost and complications to your accounting and cash management processes. Additionally, prepaid debit cards pose increased risk due to loss, misuse, or internal theft.

How We Can Help

At Edwards & Associates, we specialize in helping dental practice owners navigate financial changes like this one. If you need assistance updating your information with the IRS or Medicare, reconciling digital payments, or ensuring your cash flow remains strong during the transition, we’re here to help.

Preparing Your Dental Practice for Potential Tariff Uncertainty

As the political landscape shifts, many dental practice owners are wondering how potential tariff changes under a new administration might affect their businesses. While it’s impossible to predict exactly what future trade policies will look like, there are smart steps you can take now to prepare without getting caught up in unnecessary worry.

What Could Be Impacted?

Dental practices rely on a range of supplies and equipment that are often manufactured overseas, including:

  • Dental chairs, imaging equipment, and sterilization machines
  • Handpieces and other specialty tools
  • Personal protective equipment (PPE) like gloves and masks
  • Lab materials, including crowns and implants

If tariffs are placed on goods from certain countries, costs for these items could rise. However, much remains uncertain, and even if tariffs are introduced, they could take time to phase in, giving practices an opportunity to adjust.

Don’t Forget Company Vehicles

Another area that could be impacted by tariffs is company vehicles. If your practice owns or leases vehicles for business purposes, potential tariffs on imported automobiles and parts could drive up costs.

Even vehicles manufactured in the U.S. often rely on parts sourced globally. This means:

  • The cost of new vehicle purchases or leases could increase.
  • Repairs and maintenance expenses could rise if imported parts become more expensive.
  • Lead times for service or new vehicle availability could be affected if supply chains are disrupted.

If you anticipate needing to replace or add a business vehicle in the next year or two, it may be worth evaluating your options sooner rather than later. 

What Can Dental Practices Do Now?

  • Review Vendor Relationships: Now is a good time to review where your equipment and supplies are sourced. Talk to your suppliers about contingency plans or alternative options should tariffs impact certain products.
  • Maintain Healthy Inventory Levels: If you rely heavily on imported supplies, consider modestly increasing your inventory on key items to hedge against short-term price increases.
  • Budget with Flexibility: Build some extra flexibility into your supply and equipment budgets for 2025 and 2026. Having a little financial cushion can help absorb any potential price fluctuations.
  • Stay Informed, Not Alarmed: Rely on reputable, non-partisan sources to track policy changes. Professional organizations like the ADA and your trusted advisors (including us!) will help break down what changes could mean specifically for dental practices.
  • Focus on What You Can Control: Operational efficiency, strong vendor partnerships, and proactive financial planning will serve you well regardless of the broader economic environment.

While the headlines may feel overwhelming at times, dental practices are resilient. With some thoughtful planning, you can navigate potential changes smoothly and continue delivering outstanding care to your patients.

If you’d like to discuss ways to strengthen your practice’s financial resilience, our team is here to help.