Don’t Get Scammed: Fake “Beneficial Ownership” Filing Notices Targeting Business Owners

Key Takeaways

  • Fake “Beneficial Ownership” notices are being mailed to business owners
  • These forms are not from FinCEN or any government agency
  • Most U.S.-formed businesses are currently not required to file
  • These scams are designed to collect money and sensitive information
  • Always verify before responding to any unexpected filing request

What Dental Practices Need to Know

We want to make you aware of a mail scam currently circulating that is targeting business owners, including dental practices.

Several clients have received official-looking forms titled “Form 5102 – Annual Filing Report Service LLC” requesting a $149 payment and referencing “Mandatory Beneficial Ownership Reporting” under the Corporate Transparency Act.

These notices are designed to look legitimate and urgent, but they are not.

This Is Not a Government Notice

These mailings are not from FinCEN, the IRS, or any federal agency. They are sent by private companies attempting to collect payment and sensitive business information.

That distinction matters. The forms often use official language, formatting, and even government-style terminology to create a sense of urgency. In some cases, they reference penalties or deadlines to pressure business owners into responding quickly.

What Legitimate BOI Reporting Looks Like

There is real confusion around Beneficial Ownership Information (BOI) reporting right now, which is exactly why these scams are effective.

Here’s what you should know:

  • FinCEN does not send paper forms through the mail
  • FinCEN does not request payment by check or money order
  • BOI filings are submitted online only through FinCEN’s official website
  • Most U.S.-formed businesses are currently not required to file

If a notice doesn’t align with those facts, it should raise concern.

How These Scams Work

These notices are designed to look official, but they follow a pattern.

They often:

  • Use fake form numbers that resemble IRS or government documents
  • Include prepaid return envelopes
  • Request sensitive details such as owner names, addresses, EINs, and signatures
  • Reference penalties or legal consequences to create urgency

The goal is simple: collect money and information before you have time to question it.

What You Should Do If You Receive One

If you receive a notice like this:

  • Do not pay it
  • Do not complete or sign the form
  • Do not provide any personal or business information

If you’re unsure whether something is legitimate, reach out to us before taking action.

Why This Matters for Dental Practices

Dental practices are frequent targets for these types of scams because they are established businesses with predictable compliance requirements.

Scammers know that practice owners are used to handling regulatory filings and may respond quickly to avoid penalties or disruption. That’s what makes this type of notice particularly effective.

When in Doubt, Ask First

If Beneficial Ownership reporting ever applies to your specific situation, we will notify you directly and guide you through the correct process. Until then, treat any unexpected filing request or payment demand with caution. If something doesn’t feel right, it’s worth a quick check before responding.

If you’ve received a notice like this or have questions about BOI reporting, contact our office before taking action. We’re here to help you avoid unnecessary costs and protect your business.

Borrowing From Retirement Savings: An Option Dentists Should Understand

Key Takeaways

  • 401(k) loans are only available through certain employer-sponsored plans; IRAs generally do not allow borrowing.
  • Loan limits are typically the lesser of $50,000 or 50% of your vested balance.
  • Interest paid on the loan goes back into your own account, but missed repayments can trigger taxes and penalties.
  • This option may make sense for short-term needs when income is stable and other borrowing options are more expensive.
  • Practice owners and associates face different risks, especially around income variability and employment changes.
  • Borrowing from retirement savings should be evaluated alongside other financing options, not in isolation.
  • The decision should align with your broader financial plan, not just an immediate cash need.

When a large expense comes up, such as home renovations, tuition, consolidating high-interest debt, or even a temporary cash need, many dentists start evaluating their financing options. Bank loans, lines of credit, and personal savings are often part of that conversation. Another option to consider is borrowing from retirement savings.

Used thoughtfully, a retirement plan loan can be a tool worth understanding. Like any option, it has trade-offs, and whether it makes sense depends on your role (practice owner vs. associate), cash flow stability, and long-term goals. 

This post walks through how it works, who it may be appropriate for, and what to keep in mind before deciding.

First, an important distinction: 401(k) loans vs. IRAs

Only certain employer-sponsored retirement plans, such as many 401(k) s, allow participant loans. Whether a loan is permitted depends entirely on the plan document.

IRAs generally do not allow loans. Money taken from an IRA is typically treated as a distribution, not a loan, and different tax rules apply. Because of that, most of the discussion below focuses on 401(k) plans, including solo 401(k)s commonly used by practice owners.

How a 401(k) loan typically works

If your plan allows loans, you may be able to borrow:

  • Up to $50,000, or
  • 50% of your vested account balance, whichever is less

Repayment is usually required within five years, though some plans allow longer terms if the funds are used to purchase a primary residence. Payments are made on a set schedule, often through payroll deductions, and include interest that is credited back to your own account.

There is no credit check, and approval is based on plan rules rather than lender underwriting.

Why some dentists consider this option

For both owners and associates, a 401(k) loan may be a good idea when:

  • Cash is needed for a defined, near-term purpose
  • Other borrowing options carry significantly higher interest rates
  • The borrower has stable, predictable income to support repayment
  • The goal is to avoid taking on new external debt

For practice owners, this can sometimes function as a short-term liquidity bridge, especially when income timing is uneven. For associates, payroll-based repayment can feel straightforward and manageable.

Differences to consider: owners vs. associates

Practice owners

  • Often have more control over income timing, but also more variability
  • May be using a solo 401(k), where plan design decisions matter
  • Should consider how loan repayments interact with practice cash flow, especially during slower collection periods

Associates/employees

  • Typically repay through payroll deductions
  • Should understand what happens if employment changes
  • May have less flexibility if income drops or hours change

In both cases, it’s worth reviewing what happens under your specific plan if repayment is interrupted or employment status changes.

What happens if repayment doesn’t go as planned

If loan payments stop or fall outside the plan’s rules, the remaining balance may be treated as a taxable distribution. If you are under the age of 59½, additional taxes may apply.

This isn’t meant as a warning; it’s simply part of understanding the structure. Many dentists successfully repay 401(k) loans without issue, particularly when the loan amount is conservative, and repayment fits comfortably within their budget.

How this compares to other funding options

A retirement plan loan is best viewed alongside alternatives such as:

  • Home equity lines of credit
  • Practice or personal loans
  • Credit cards (generally higher cost)
  • Using non-retirement savings

Each option affects cash flow, risk, and long-term planning differently. A 401(k) loan is not inherently “good” or “bad,” it’s simply one tool with its own set of trade-offs.

A thoughtful way to approach the decision

Before moving forward, it helps to ask:

  • Does my retirement plan allow loans, and under what terms?
  • Is the loan amount modest relative to my total retirement savings?
  • Can I repay comfortably without stressing household or practice cash flow?
  • How would this affect my long-term retirement strategy?
  • Is there another funding option that better aligns with my goals?

Borrowing from a 401(k) can be a practical option in the right circumstances, especially for dentists with stable income and a clear repayment plan. It’s not a solution for every situation, and it’s rarely the only option worth considering.

Whether you’re a practice owner or an associate, the key is understanding how the mechanics work and how this choice fits into your broader financial picture. That’s where having a conversation, before making a move, can make all the difference.

If you’d like help evaluating whether a retirement plan loan fits into your overall plan, or how it compares to other options available to you, we’re happy to walk through it with you.

Podcast Recap: Creating a Culture of Radical Accountability – Part 2

Key Takeaways

  • Communication is ultimately the responsibility of the leader.
  • Teams perform better when they understand how their work affects others in the workflow.
  • Every process should have a clearly defined owner to avoid confusion.
  • Inspiration, not just motivation, helps drive stronger engagement from employees.
  • Accountability requires consistent standards across the entire team, including leadership.
  • Leaders who model the behaviors they expect create stronger, more accountable teams.

In this second installment of our conversation on Beyond Bitewings, Ash continues the discussion with leadership expert Dave Rosenberg about how organizations build a culture of accountability that actually works.

If you missed the first episode, be sure to read or watch Part 1, where Dave introduced the foundational framework for accountability and why many organizations struggle to implement it.

In this episode, the conversation moves from theory to practice, focusing on leadership behaviors, communication, and the mindset that drives real accountability inside a team.

For dental practice owners, these ideas directly affect how teams work together, solve problems, and deliver consistent patient care.

Communication Is the Leader’s Responsibility

One of Dave’s most important points is that communication is ultimately the responsibility of the leader.

Leaders sometimes believe that once a message has been delivered, the responsibility shifts to the team to understand it. In reality, effective leadership means ensuring the message is actually received and understood.

A simple way to confirm this is by asking open-ended questions such as:

  • What do you understand your role to be here?
  • What are we trying to accomplish?
  • Why are we doing it this way?

When team members clearly understand the intent behind decisions, they are better able to adapt when things inevitably change. As Dave notes, no plan survives contact with reality. But when people understand the mission, they can still move in the right direction when unexpected challenges arise.

Why Teams Need the Bigger Picture

Accountability also improves when team members understand how their actions affect others in the workflow.

In a dental practice, this could involve everyone from the front desk and treatment coordinators to hygienists, assistants, and billing staff. When employees understand how their work impacts others downstream, they are more likely to communicate changes and avoid creating problems for the rest of the team.

This awareness helps shift the focus from simply completing tasks to understanding how each role contributes to the overall success of the practice.

Accountability Requires Clear Ownership

Another concept Dave discusses is the value of an accountability map.

The idea is straightforward: every process should have a clearly defined owner. That owner isn’t necessarily the only person doing the work, but they are responsible for ensuring the process is completed correctly.

Without clear ownership, teams often fall into the trap of assuming someone else will handle an issue. When everyone is responsible, accountability tends to disappear. By clearly assigning ownership, leaders reduce confusion and eliminate the finger-pointing that often occurs when something goes wrong.

Motivation vs. Inspiration

Dave also makes an important distinction between motivation and inspiration.

Motivation often comes from external rewards like pay, bonuses, or benefits. Inspiration, however, is internal and comes from believing in the purpose of the work.

In dentistry, that purpose is often easy to see. Dental professionals help patients improve their health, comfort, and confidence every day.

When team members understand the value they bring to patients and how their role contributes to that outcome, they are more likely to go beyond the minimum requirements of the job. Hiring people who connect with that purpose, and helping them see how their work supports it, can significantly strengthen a culture of accountability.

The Danger of “Exceptional” Exceptions

One leadership challenge many businesses face involves employees who perform well in one area but ignore standards in others.

Sometimes these individuals are allowed to operate outside established procedures because they appear highly productive. Over time, this creates a dangerous precedent.

If one person is allowed to ignore the rules, others will begin to question why the rules apply to them. As Dave explains, if standards do not apply to everyone, they eventually stop applying to anyone.

Consistency is essential to maintaining accountability across the entire team.

Leaders Must Model the Standard

Perhaps the most important leadership principle discussed in this episode is that leaders must hold themselves to the same standards they expect from their teams.

If leaders regularly ignore the expectations they set, such as showing up late to meetings or failing to respect others’ time, it becomes difficult to enforce those standards with employees.

Accountability begins with leadership behavior. When leaders consistently model the standards they expect, the rest of the organization is far more likely to follow.

The First Step Toward Improving Accountability

For practice owners who want to strengthen accountability within their teams, Dave recommends starting with honest self-reflection.

Consider the behaviors you expect from your team and ask whether you consistently demonstrate those behaviors yourself. From there, leaders can have an open conversation with their team about the standards they want to establish moving forward.

This type of transparency helps build trust and creates a culture where accountability is shared rather than imposed.

How to Tell If Accountability Is Improving

In many cases, the signs of stronger accountability appear gradually. Teams begin communicating more clearly. Mistakes and rework become less frequent. Processes become more consistent.

Improvement rarely happens overnight, but as expectations become clearer and behaviors align with those expectations, accountability begins to take hold throughout the organization.

Why This Matters for Dental Practices

At the end of the episode, Dave offered a simple but powerful reminder for leaders:

Be the team member you want your team members to be.

When leaders demonstrate the standards they expect, communicate clearly, and help employees understand the purpose behind their work, accountability becomes much easier to sustain.

Leasing a Business Vehicle? What Dentists Should Know About the IRS Lease Inclusion Rule

Key Takeaways

  • The IRS lease inclusion rule slightly reduces deductions for certain leased business vehicles.
  • The adjustment exists to keep the tax treatment of leasing and purchasing vehicles relatively consistent.
  • The lease inclusion amount depends on the vehicle’s value, lease year, and IRS inclusion tables.
  • As with purchased vehicles, deductions depend on the percentage of business use.
  • Dentists deciding whether to lease or buy a vehicle should consider tax rules alongside cash flow and long-term planning.

When dental practice owners evaluate vehicle options for their business, the conversation often turns to whether it’s better to buy or lease. If you’re weighing your options, it’s also important to understand the depreciation limits that apply when a dental practice buys a vehicle. We explain those rules in detail in our related article, Buying a Business Vehicle? 2026 Depreciation Limits Dentists Should Know.

From a cash flow perspective, leasing can feel simpler. Monthly payments are predictable, and there is often less upfront cost compared to purchasing a vehicle outright.

But from a tax perspective, leasing has its own rules, including something called the lease inclusion amount.

Understanding how this works can help dentists make better decisions about how vehicles fit into their overall tax planning.

Why the IRS Created the Lease Inclusion Rule

Passenger vehicles used in business are subject to depreciation limits under Internal Revenue Code Section 280F. These limits restrict how quickly businesses can deduct the cost of a purchased vehicle.

Without additional rules, leasing could become a workaround. A business could lease a high-value vehicle and deduct the full lease payment each year instead of being subject to depreciation caps.

To prevent that imbalance, the IRS created the lease inclusion rule. The rule requires businesses leasing certain passenger vehicles to add a small amount back into income each year, which slightly reduces the total deduction related to the lease.

This adjustment helps keep the tax treatment of leasing and purchasing vehicles relatively consistent. (IRS Revenue Procedure 2026-15; Internal Revenue Code §280F)

How the Lease Inclusion Amount Works

The lease inclusion amount is determined using IRS tables that are updated annually.

The calculation is based on three main factors:

  • The fair market value of the vehicle when the lease begins
  • The year of the lease
  • The IRS inclusion table for that calendar year

Revenue Procedure 2026-15 includes updated tables for vehicles first leased in calendar year 2026. The tables list ranges of vehicle values and assign a small dollar amount that must be included in income each year of the lease.

This amount increases gradually during the lease term. In practice, the adjustment usually represents a relatively small reduction in the overall lease deduction.

Business Use Still Determines the Deduction

As with purchased vehicles, the amount a dental practice can deduct depends on how much the vehicle is used for business purposes.

If a vehicle is used partly for personal travel and partly for practice-related activities, the deduction must be allocated based on the business-use percentage. The same percentage applies to the lease inclusion amount.

For example, if a vehicle is used 80% for business, only 80% of the lease payments are deductible, and only 80% of the lease inclusion adjustment would apply.

The IRS requires adequate records to support business use, such as mileage logs or similar documentation. (IRS Publication 463, Travel, Gift, and Car Expenses)

When Leasing Might Still Make Sense

Despite the lease inclusion rule, leasing can still make sense for some dentists.

Common situations include:

  • Dentists who prefer lower upfront costs and predictable payments
  • Practice owners who replace vehicles frequently
  • Owners who want to avoid long-term asset ownership

The tax treatment alone rarely determines whether leasing or purchasing is the better choice. Cash flow, business use, and long-term financial planning all play a role.

Planning Before Signing the Lease Matters

Because the lease inclusion rule depends on the vehicle’s value and the lease start date, it’s helpful to evaluate the tax impact before finalizing a lease agreement.

For dental practice owners, vehicle decisions often intersect with broader planning issues such as:

  • Practice structure and entity selection
  • Overall tax strategy
  • Business-use documentation
  • Long-term financial planning

Reviewing the numbers ahead of time can help ensure the vehicle decision supports both operational and tax goals.

Leasing a vehicle through your dental practice can still provide meaningful deductions, but it comes with its own tax rules. The IRS lease inclusion adjustment exists to keep the tax treatment of leased and purchased vehicles relatively balanced.

For dentists deciding between leasing and buying, understanding both sets of rules for depreciation limits and lease inclusion adjustments can make it easier to choose the option that best fits the practice’s financial strategy.

Buying a Business Vehicle? 2026 Depreciation Limits Dentists Should Know

Key Takeaways

  • The IRS has updated 2026 depreciation limits for passenger vehicles used in business.
  • Even with bonus depreciation, passenger automobiles remain subject to Section 280F deduction caps.
  • Dentists who purchase higher-value vehicles may not be able to deduct the full cost as quickly as expected.
  • Vehicle deductions depend heavily on documented business use, including accurate mileage records.
  • Dentists considering whether to buy or lease a vehicle through their practice should review the tax implications in advance.

Many dentists use vehicles in their business, whether it’s traveling between multiple offices, visiting labs or suppliers, attending continuing education, or handling administrative responsibilities for the practice.

Because vehicles can represent a significant expense, tax deductions related to them often become part of broader tax planning. Each year, the IRS adjusts the amount that can be deducted for passenger vehicles used in a business.

For 2026, those limits have been updated again. While the increases are modest, they still matter for practice owners considering whether to buy, finance, or lease a vehicle through the practice.

Why Vehicle Depreciation Has Limits

Under Internal Revenue Code Section 280F, the IRS places caps on how quickly a business can depreciate passenger vehicles. These limits exist because vehicles are considered “listed property,” meaning they are often used for both business and personal purposes. Instead of allowing businesses to write off the entire cost immediately, the IRS restricts the deduction amount each year.

These limits apply to passenger automobiles used for business, including cars, trucks, and vans placed in service after September 27, 2017. The limits are adjusted annually for inflation. (IRS Revenue Procedure 2026-15)

2026 Depreciation Limits for Business Vehicles

For vehicles placed in service during 2026, the maximum depreciation deductions are:

If bonus depreciation is used:

  • Year 1: $20,300
  • Year 2: $19,800
  • Year 3: $11,900
  • Each year after: $7,160

If bonus depreciation is not used:

  • Year 1: $12,300
  • Year 2: $19,800
  • Year 3: $11,900
  • Each year after: $7,160

These figures represent modest increases from 2025 and reflect adjustments tied to the automobile component of the Chained Consumer Price Index for Urban Consumers (C-CPI-U). 

While these limits may seem technical, they can influence whether purchasing a vehicle provides the tax outcome you expect.

What This Means for Dental Practice Owners

For dentists, vehicles are rarely the largest tax deduction in a practice. However, they often play a role in broader tax planning.

Common scenarios include:

  • A dentist who owns multiple practice locations and travels between them.
  • Practice owners who use a vehicle to visit labs, vendors, or satellite offices.
  • Dentists attending continuing education programs or professional meetings.
  • Owners running administrative tasks related to the practice.

In these situations, vehicle use may qualify as a legitimate business expense, but the depreciation caps still apply. That means a dentist who purchases a high-value vehicle for business purposes may not be able to deduct the full cost as quickly as expected.

Bonus Depreciation Still Plays a Role

Bonus depreciation can increase the first-year deduction for vehicles, but passenger automobile limits still apply.

Under current law, bonus depreciation allows businesses to deduct a portion of an asset’s cost in the first year it is placed in service. The percentage allowed has been gradually decreasing after the Tax Cuts and Jobs Act expanded it to 100%. Even with bonus depreciation available, the Section 280F caps prevent passenger vehicles from being fully written off immediately.

For certain heavier vehicles used primarily for business, different rules may apply under Section 179 or other depreciation provisions. The specific treatment depends on factors such as vehicle weight and business use percentage.

Leasing Has Its Own Tax Rules

Some dentists choose to lease a vehicle through the practice rather than purchase one, especially when they prefer predictable payments or plan to replace vehicles more frequently.

However, leasing does not completely avoid the tax limitations that apply to passenger vehicles.

Under Section 280F of the Internal Revenue Code, the IRS applies what is known as a lease inclusion amount for certain higher-value vehicles. This rule slightly reduces the deduction for leased vehicles to keep the tax treatment of leasing and purchasing relatively consistent.

The calculation depends on the vehicle’s value when the lease begins and the IRS inclusion tables for that year. Revenue Procedure 2026-15 includes updated inclusion tables for vehicles first leased in 2026.

Because the rules for leased vehicles are calculated differently from depreciation limits, we’ll walk through them in more detail in a separate article: Leasing a Business Vehicle? What Dentists Should Know About the IRS Lease Inclusion Rule.

Business Use Still Matters

Regardless of whether a vehicle is purchased or leased, deductions depend heavily on how much the vehicle is used for business.

If a vehicle is used partly for personal purposes, only the business-use portion of expenses or depreciation is deductible.

Maintaining proper mileage logs and documentation is important for substantiating business use if questions arise. The IRS specifically notes that listed property deductions require detailed records to support the percentage of business use. (IRS Publication 463)

Final Thoughts

The IRS’s updated 2026 depreciation limits are a reminder that vehicle deductions rarely work the way people expect. Even though the limits increased slightly this year, passenger automobiles remain subject to caps that restrict how quickly the cost can be written off.

For dentists considering a vehicle purchase or lease through their practice, it’s worth reviewing the tax implications in advance. Small planning decisions can affect deductions not just in the first year, but for several years afterward.

If you are evaluating a vehicle purchase, adding another location, or simply want to understand how these rules apply to your practice, discussing the details with us can help ensure the decision fits into your overall financial strategy.

Is Your Accounting Firm the Right Fit for Your Dental Practice?

Key Takeaways

  • Filing your tax return on time does not mean your accounting relationship is strategic or proactive.
  • Dental practices require industry-specific financial insight, including overhead benchmarking and cash flow analysis.
  • If your CPA only engages at tax time, you may be missing planning opportunities that affect profitability and long-term value.
  • Clean, timely bookkeeping is essential for accurate tax reporting and confident decision-making.
  • You should understand your numbers clearly without jargon or confusion.
  • Choosing an accounting firm that works exclusively with dental practices can provide deeper, more relevant guidance.

Most dentists don’t wake up thinking about their accounting firm.

If your tax return gets filed on time and your CPA answers emails eventually, it’s easy to assume everything is working. After all, your focus is patient care, team leadership, and keeping the schedule full. Accounting may feel like something that simply needs to “get done.”

But the right accounting relationship should do more than produce a tax return or monthly books. It should give you clarity, confidence, and control over the financial engine of your practice. If it doesn’t, you may be operating with blind spots you don’t even realize are there.

Indicators Your Current Accounting Firm May Not Be the Right Fit

You’re not clear on what they actually do for you

Every accounting relationship should begin with a clearly defined scope of services. The AICPA emphasizes the importance of engagement letters that outline responsibilities, limitations, and expectations so there are no misunderstandings later.

If you can’t confidently explain what’s included and not included in your monthly services, who is responsible for bookkeeping accuracy, and what happens if something goes wrong, then the relationship may be too vague to protect you. A well-defined scope isn’t about paperwork. It’s about accountability.

Your relationship is tax-focused, but your business decisions aren’t

Filing a tax return is compliance. Running a dental practice requires financial strategy.

If your accounting firm only engages with you during tax season, you may not be getting the guidance you need for decisions such as:

  • Hiring another hygienist
  • Investing in new technology
  • Adjusting fees
  • Adding an associate
  • Reducing insurance participation
  • Planning for an eventual transition

Tax preparation looks backward. Business strategy looks forward. If no one is helping you connect those two, you’re likely missing opportunities or exposing yourself to risk.

Your books don’t tell a clear story

The IRS is clear that business owners must maintain records that support income and deductions and clearly reflect business activity.

If your financial records regularly require last-minute cleanup, reclassification, or reconstruction at tax time, that’s a signal that your accounting system isn’t functioning properly.

In a dental practice, that can be especially problematic. Production, collections, payroll, lab costs, and supply expenses move quickly. Without clean monthly reporting, you may not notice overhead creep or margin compression until it becomes significant. You shouldn’t feel unsure about whether your books are accurate. You should trust them.

You don’t understand your overhead or how it compares to other dental practices

Dental practices operate on relatively tight margins. Industry sources commonly cite average overhead in the low 60% range for general practices, with variation depending on specialty and location. That benchmark doesn’t dictate how your practice should run. But without context, numbers lack meaning. 

If your accounting firm never references industry norms, never discusses trends in your expense categories, and never helps you interpret your results, you’re operating without a frame of reference. You don’t need generic advice. You need informed interpretation.

Cash feels unpredictable even when production is strong

Profit and cash flow are not the same thing. Loan payments, equipment purchases, quarterly tax estimates, and timing differences in insurance collections can create tension even in a profitable practice.

If your accounting firm can’t clearly explain where your cash is going, or why certain months feel tight, that’s not just frustrating; it’s limiting your ability to plan confidently. A strong accounting partner should be able to translate your financial statements into plain language and connect them to operational reality.

Data security is treated casually

Dental practices are already highly regulated when it comes to patient information. Your financial and tax data deserve the same level of care. The Federal Trade Commission’s Safeguards Rule highlights the importance of maintaining a written information security program to protect sensitive data.

If your accounting firm cannot clearly articulate how they protect client data beyond saying “we’re careful,” that’s worth examining. Security isn’t optional; it’s part of the service.

You leave conversations more confused than when you started

This may be the simplest indicator of all. When you ask a question about taxes, compensation, debt, or practice value, do you receive clarity or jargon?

Dentists are highly educated professionals. You shouldn’t feel intimidated in financial conversations. If you consistently walk away unsure of what was decided or why, the communication gap may be limiting your growth.

Questions to Ask When Evaluating an Accounting Firm

If you’re reconsidering your current relationship or evaluating options, here are a few practical questions to guide the discussion:

  • What percentage of your clients are dental practices?
  • How do you help owners interpret monthly results, not just prepare tax returns?
  • What does your month-end close process look like?
  • How do you ensure our books support our tax reporting cleanly?
  • How do you protect client data?
  • Who will actually be doing the work on my account?

The AICPA recommends interviewing CPAs and asking direct questions about specialization, experience, and client expectations before engaging a firm. You are hiring a strategic partner, not just a preparer.

Your Practice Deserves More Than Basic Compliance

Many dentists stay with an accounting firm out of habit, in part because changing feels disruptive. But the cost of staying in the wrong relationship can be much higher than the inconvenience of transitioning.

The right accounting partner should help you:

  • Understand your numbers
  • See risks before they become problems
  • Make informed hiring and investment decisions
  • Build a practice that supports your long-term goals

If your current firm isn’t providing that level of clarity and confidence, it may be time to reevaluate the fit. At Edwards & Associates, we work exclusively with dental practices, helping owners move beyond basic compliance to truly understand their numbers and make informed, strategic decisions. Reach out if you’d like to learn more. 

Credit Policies That Protect Your Dental Practice

Key Takeaways

  • Extending credit is common in dental practices, but unmanaged credit risk can quietly strain cash flow and staff resources.
  • A simple, objective credit risk rating system helps teams apply billing decisions consistently and reduce emotional judgment.
  • Written payment agreements are essential for larger balances and extended payment plans.
  • Ongoing monitoring, documentation, and a defined collections process prevent small issues from becoming costly write-offs.
  • Proactive credit policies protect the practice while maintaining professionalism and patient trust.

For many dental practices, extending credit is a routine part of delivering care. Whether receiving in-house payment plans, waiting on insurance reimbursements, or billing third‑party payers, timely collections are essential to maintaining healthy cash flow.

Flexibility is valuable, but extending credit without clear guidelines can quietly create financial strain. Even a small number of slow‑pay or unpaid accounts can place pressure on your cash flow and add stress to your front office team.

The objective isn’t to eliminate flexibility. It’s to manage credit risk with intention, professionalism, and consistency so your practice stays healthy while preserving patient trust.

Implement a Simple Credit Risk‑Rating System

Not every account carries the same level of financial risk. Establishing an internal risk‑rating structure helps your team determine:

  • Which patients or accounts are eligible for billing
  • How much credit you are comfortable extending
  • When an account should shift to partial payment or prepayment

Ratings should be based on measurable, objective criteria such as:

  • Payment history
  • Frequency of late payments
  • Outstanding balances
  • Insurance reimbursement patterns

A defined system reduces emotional decision‑making and ensures your team applies policies uniformly.

Use Written Payment Agreements for Larger Balances

For significant treatment plans or extended payment arrangements, a written agreement is essential. This document should:

  • Identify the financially responsible party
  • Outline payment terms, due dates, and expectations
  • Specify consequences for missed or late payments

If an account becomes delinquent, a signed agreement offers important leverage, particularly if third‑party collection support becomes necessary.

Monitor Payment History on an Ongoing Basis

Once credit is extended, active oversight protects your practice. Adjust terms promptly when an account:

  • Pays late consistently: Reduce the credit limit or shorten terms
  • Misses’ payments repeatedly: Require partial or full prepayment for future services

Adjusting terms isn’t punitive; it is a safeguard that prevents growing exposure and unnecessary write‑offs.

Document All Billing‑Related Communication

Accurate documentation creates continuity and protects the practice. Train your team to record:

  • What was discussed
  • What the patient or payer committed to
  • Any explanations for delays or nonpayment

Patterns often emerge over time. Documentation also helps ensure consistency when staff members change or when multiple team members interact with the same patient.

Establish a Clear, Step‑by‑Step Collections Process

Review your accounts receivable aging report monthly and ensure your team understands the specific actions taken at each stage:

  • 30 days past due
  • 60 days past due
  • 90+ days past due

Defined escalation steps help prevent accounts from aging unnoticed and maintain accountability across the team.

Recognize Early Warning Signs of Credit Risk

Many problem accounts show red flags early. Train your staff to recognize signals such as:

  • Smaller invoices being paid while larger balances remain open
  • Avoiding calls, emails, or follow‑up conversations
  • Requests for increased credit despite poor payment history
  • Failure to provide updated insurance or contact information
  • Reports on personal financial strain

Catching these signs early allows you to adjust terms before balances grow unmanageably.

Protect Your Practice While Supporting Your Patients

Even long‑standing patients may encounter financial challenges. A well‑structured credit and collections system allows your team to differentiate between accounts needing short‑term flexibility and those requiring firmer boundaries.

By staying proactive, consistent, and well‑documented, your practice safeguards its cash flow without compromising professionalism, compassion, or patient trust.

IRS Shares More Details on the Phase-Out of Paper Checks

Key Takeaways

  • The IRS is continuing its move away from paper tax refund checks, making electronic refunds the default.
  • If direct deposit information isn’t provided, the IRS may issue a notice requesting banking details instead of automatically mailing a check.
  • Paper checks may still be issued in limited situations, but they are no longer the default and will become less common over time.
  • These changes do not affect how tax returns are filed, only how refunds and payments are delivered.
  • Most dental practices already operate electronically, but family members or employees who rely on paper checks may experience delays if they aren’t prepared.

Back in September, we wrote a blog post outlining the IRS’s plan to phase out paper tax refund checks, a shift that moves the default toward electronic refunds and, over time, electronic payments. In that earlier post, we focused on the big-picture considerations: why the IRS is making this change, the anticipated timeline, and what taxpayers should expect as the transition unfolds.

Recently, the IRS released additional guidance that fills in many of the practical details. Rather than revisiting what is changing, this update addresses the more common follow-up questions we’ve been hearing, namely, how the process actually works and what happens if banking information is not provided.

For most dentists and practice owners, this won’t feel disruptive. You likely already file electronically, receive refunds via direct deposit, and make payments online. However, these changes are still important, especially if you assist family members, employees, or others who continue to rely on paper checks.

What’s New in the Latest IRS Guidance

What if direct deposit information isn’t included on the return?

If a taxpayer files a return without providing direct deposit details, the IRS will still process the return. However, instead of automatically issuing a paper check, the IRS may send a CP53E notice requesting updated banking information. The taxpayer generally has 30 days to respond.

It’s important to note that the IRS will only communicate this request through an official letter mailed to the taxpayer’s last known address, never by email, text message, or phone call.

This additional step can delay refunds and cause confusion for taxpayers who are expecting a check to arrive in the mail. Including accurate direct deposit information upfront remains the most efficient way to avoid delays.

Will paper checks still be an option?

Yes, but only in limited circumstances. The IRS acknowledges that some taxpayers do not have access to bank accounts or electronic payment tools. In those cases, alternative electronic methods may be used, and paper checks may still be issued as a last resort. That said, paper checks will no longer be the default, and their availability is expected to continue narrowing over time.

Does this change how tax returns are filed?

No. There are no new forms and no changes to the filing process itself. This guidance affects how refunds and payments are delivered after a return is processed, not how the return is prepared or submitted.

Can taxpayers still pay the IRS by check?

For now, yes. Paper checks and money orders are still accepted. However, the IRS continues to encourage electronic payment options such as Direct Pay, EFTPS, and debit or credit card payments. The long-term direction is clearly toward fully electronic transactions.

Will refunds take longer because of this?

Generally, no. electronic refunds remain the fastest and most secure option. Delays primarily happen when a taxpayer expects a paper check that is no longer automatically issued.

Why This Matters, Even If Your Practice Is Already Digital

Most dental practices already operate in a fully electronic environment. However, many people around you, particularly elderly relatives, retirees, or individuals who are uncomfortable with electronic banking, may not be prepared for this transition.

Some still expect a refund check to arrive in the mailbox. Others hesitate to provide banking information due to security concerns. Making them aware of these changes now can help them:

  • Avoid delayed or missing refunds
  • Understand why a paper check may no longer arrive
  • Set up direct deposit or alternative electronic options before filing

For taxpayers who rely on timely refunds, this guidance is especially important.

What to Do Now

For dentists and practice owners, the action steps are straightforward:

  • Keep using electronic filing, refund, and payment methods
  • Verify banking information each year
  • Share this IRS update with family members or employees who still rely on paper checks

And as always, if questions come up, whether about refunds, electronic payment options, or how these changes fit into your broader tax planning, we’re here to help you navigate the details with confidence.

Further Tax Deduction Updates for Dentists: What Meal & Perk Changes Mean in Practice

Key Takeaways:

  • Several everyday deductions dental practices relied on are now limited or eliminated.
  • Employer‑provided meals and on‑site food are no longer deductible beginning in 2026.
  • Client meals and business travel meals continue to be 50% deductible with proper documentation.
  • These changes affect day-to-day spending decisions, not just year-end planning.
  • Practices should reassess perks, reimbursements, and cash‑flow assumptions now, not at filing time.

Earlier this year, we shared an overview of the broader tax deduction changes affecting dental practices in 2026: what changed, what stayed the same, and how to stay ahead. This follow-up takes a closer look at one area where many practices are now seeing real, day-to-day impact: meals, staff perks, and operating expenses that quietly lost their tax benefit as of January 1.

While these provisions aren’t new to the tax code, 2026 is the year they are fully phased out. For many dental practice owners, the impact is only now becoming clear, especially as routine expenses no longer reduce taxable income the way they once did.

These changes don’t mean your practice is out of compliance. But they do mean that assumptions built into your budgeting and tax planning may need to be updated to avoid surprises.

The Biggest Change: Employer-Provided Meals

For most dental practices, the most noticeable shift in 2026 is how employee meals are treated for tax purposes. Meals provided for the employer’s convenience are no longer deductible. This includes:

  • Breakroom snacks and beverages
  • Coffee and refreshments
  • Catered lunches
  • Meals provided during long workdays or late hours
  • On‑site cafeteria or food programs

This rule applies even when meals support productivity, keep staff on-site, or contribute to team morale. In prior years, these costs were partially deductible, but that benefit has officially expired.

However, some meal deductions remain intact:

  • Meals with patients, referral partners, vendors, or consultants are still 50% deductible, as long as there is a clear business purpose.
  • Meals during overnight business travel also remain 50% deductible with proper documentation.

For practices that treat food as part of their culture, this change isn’t about compliance; it’s about budgeting. The expense still exists, but the tax benefit does not.

2026 Deductibility Comparison Table

Here’s a quick glance at how common meal-related expenses are treated starting in 2026:

Expense TypeDeductible Before 2026Deductible in 2026
Employer-provided meals (on-site, convenience)50%0%
Breakroom snacks, coffee, beverages50%0%
Client / referral source meals50%50%
Employee travel meals (overnight travel)50%50%

Documentation and proper reporting remain essential.

What Dental Practice Owners Should Review and Update for 2026

While meal deductions tend to draw the most attention, they’re often just the first place where outdated assumptions show up. The broader issue for many dental practices is that certain expenses still exist, but no longer deliver the same tax benefit they once did.

To stay ahead of surprises, this is a good time to review:

  • How compensation, benefits, and non-cash perks are structured
  • Whether certain fringe benefits should now be treated as taxable wages
  • Recurring expenses that were previously deductible but no longer are
  • Whether certain perks still make sense without a tax offset
  • Timing of equipment purchases or office improvements
  • Whether some expenses should shift from the practice to the personal level
  • Cash flow projections built around deductions that no longer apply
  • Documentation for client meals, travel meals, and reimbursements

This isn’t about alarm or drastic change. It’s about making sure your planning reflects today’s tax landscape, not rules that quietly expired. Addressing these items proactively almost always leads to better outcomes than trying to retroactively adjust at year-end.

Our Take: Awareness Beats Surprise

Tax laws don’t always change with big headlines. Sometimes they shift quietly in the background. The impact often shows up only when the numbers don’t look the way you expected.

At Edwards & Associates, we help dental practice owners understand how current tax rules influence real‑world decisions, from payroll and perks to cash flow and long‑term planning. If your practice may still be operating under assumptions from prior years, now is the right moment to revisit them. If you’d like to review how the 2026 deduction changes affect your practice specifically, our team is ready to walk you through the details long before small changes turn into costly surprises.

A New Federal Education Tax Credit Is Coming in 2027

Key Takeaways

  • A new federal education tax credit under Section 25F begins in 2027, but it is capped at $1,700 per year and is nonrefundable.
  • The credit is only available if a taxpayer’s state opts in and certifies eligible Scholarship Granting Organizations (SGOs).
  • Contributions used for the SGO credit cannot also be claimed as charitable deductions and may be reduced by state-level credits.
  • Strict qualification rules mean only certain nonprofits will be eligible, especially in the early years of the program.
  • For most high-income dentists and practice owners, this credit is a supplemental tool, not a core tax strategy.

Starting in 2027, a new federal tax credit will enter the picture for individual taxpayers who support K–12 education through qualified scholarship organizations. Known as the Scholarship Granting Organization (SGO) tax credit, this provision was created under the One Big Beautiful Bill Act and added to the tax code as Section 25F.

At first glance, this credit looks like another charitable incentive. In reality, it operates very differently from traditional charitable deductions and has some important limitations that dentists and practice owners should understand before factoring it into their planning.

The big takeaway: this is a real credit, but it is narrow, conditional, and unlikely to be a game changer for most high-income earners.

How the SGO Tax Credit Works

Beginning January 1, 2027, individuals may claim a federal income tax credit of up to $1,700 per year for cash contributions made to qualified Scholarship Granting Organizations. The credit reduces federal tax liability dollar for dollar, but it is nonrefundable, meaning it cannot create a refund if no tax is owed. If the full credit cannot be used in a given year, unused amounts may be carried forward for up to five years.

For dentists and practice owners, federal tax liability is rarely the limiting factor. The more important questions are availability, coordination with other credits, and whether the credit adds value compared to existing strategies.

Why State Participation Matters More Than Income

One of the most misunderstood aspects of the SGO credit is that states must opt in before any taxpayer can claim it. No state is automatically included. States that choose to participate must formally elect to do so and submit a list of certified SGOs to the IRS. States can begin making these advance elections this year for 2027.

As of now, no states, including Texas, have opted in. If Texas does not participate, Texas-based dentists would only be able to claim the credit by donating to an SGO located in another participating state, assuming the organization accepts out-of-state donors and is properly certified. Whether that becomes practical will depend heavily on how states implement the program.

What Makes an Organization a “Qualified” SGO

Not every education-related nonprofit will qualify for this credit. To be eligible, an organization must meet strict criteria designed to ensure funds are used for broad-based scholarship support rather than individual benefit.

Among other requirements, a qualified SGO must:

  • Operate as a 501(c)(3) public charity
  • Use at least 90% of its income for scholarships
  • Serve K–12 students from families earning no more than 300% of area median income
  • Provide scholarships only for qualified education expenses
  • Maintain separate accounting for credit-eligible contributions
  • Avoid earmarking donations for specific students

These guardrails are important, but they also mean the pool of eligible organizations may be limited, particularly in the early years.

The Trade-Off Dentists Need to Consider

The SGO credit comes with a key restriction that matters for high-income taxpayers: no double dipping. If a taxpayer receives a state tax credit for the same contribution, the federal credit is reduced dollar for dollar. In addition, any contribution used to claim the SGO credit cannot also be deducted as a charitable contribution.

For dentists who already give charitably and rely on itemized deductions as part of their tax strategy, this trade-off may reduce the appeal. In many cases, the lost deduction could offset much of the credit’s benefit.

Who the Program Is Designed to Help

The scholarships funded through SGOs are intended for students from low- and middle-income families. Eligible students must meet income thresholds and may use scholarship funds only for qualified K–12 education expenses such as tuition, fees, tutoring, books, and special-needs services.

Beginning in 2027, scholarship amounts used for these qualified expenses are excluded from federal income for the recipient. From a policy standpoint, the goal is to expand access to education. From a tax planning standpoint, the benefit to donors is secondary and intentionally capped.

What This Means for High-Income Dental Professionals

Many dentists and practice owners will qualify for the SGO credit. The issue is not eligibility; it’s impact. At a maximum of $1,700 per year, the credit is helpful but modest. It may make sense for those who already support education-focused charities or who value the program’s mission, but it is unlikely to materially change overall tax strategy for most high-income earners. Think of this as a supplemental planning tool, not a cornerstone strategy.

Planning Ahead

As with many new tax provisions, the real planning opportunity lies in understanding the details before acting. For now, the most important things to watch are whether Texas, or your state, elects to participate, which organizations become certified, and how the credit interacts with existing charitable and state-level programs.

Used thoughtfully, the SGO credit may complement an existing plan. Used casually, it may add complexity without much benefit. If you’d like to talk through how this credit fits into your broader personal tax plan or charitable strategy as a dentist or practice owner, we’re happy to help you evaluate it in context rather than in isolation.

New Trump Accounts Are Now Available

A new federal savings tool known informally as Trump Accounts officially becomes available with the opening of tax season on January 26, 2026. While the name has attracted attention, the real opportunity lies in how these accounts can support families and potentially serve as a new employee benefit for dental practices.

Created under the One Big Beautiful Bill in 2025, Trump Accounts introduce a new way to help children build long-term savings starting at birth. For dentists and practice owners, the question isn’t just what these accounts are, but how they might fit into both personal planning and practice benefits strategies.

What Are Trump Accounts?

Trump Accounts are a new type of tax-advantaged savings and investment account established for U.S. children. While they share some features with custodial accounts, they are designed to transition into an IRA-like structure once the child reaches adulthood.

Key features include:

  • Federal seed contribution: Children born between January 1, 2025, and December 31, 2028, who are U.S. citizens with Social Security numbers, are eligible for a one-time $1,000 federal contribution when an account is established.
  • Who can open and fund the account: Parents or guardians can establish a Trump Account when filing their tax return by completing IRS Form 4547 and submitting it with their return. Once open, parents, relatives, employers, and others can make contributions.
  • Annual contribution limits: Total contributions are generally capped at $5,000 per year per child, though certain public or charitable contributions may be treated differently.
  • Investment structure: Funds must be invested in eligible mutual funds or ETFs, typically those tracking broad U.S. equity indexes.
  • Access and use at age 18: When the beneficiary turns 18, the account converts into an IRA-like structure. From there, funds may be used for retirement, education, a first home purchase, or other qualified purposes, subject to applicable rules.

Why This Matters for Dental Families

Many dental professionals already use tools like 529 plans for education savings. Trump Accounts are different. They are not limited to education and are designed to support a broader range of long-term goals.

That flexibility can be appealing, particularly when combined with the early federal contribution and decades of potential investment growth. At the same time, these accounts introduce another layer of complexity into family financial planning.

For dental households, Trump Accounts should be evaluated alongside:

  • Existing education savings plans
  • Retirement strategies
  • Trust or estate planning structures
  • Cash flow demands tied to practice ownership

They are not an automatic replacement for other tools, but they may complement them when used thoughtfully.

A New Opportunity for Dental Practices as Employers

From a practice-owner perspective, Trump Accounts also introduce a new benefits consideration. Employers may contribute to these accounts for employees with eligible children, offering a family-focused benefit that supports long-term financial security without tying compensation solely to wages.

For dental practices competing for hygienists, assistants, and administrative staff in a tight labor market, this opens a new conversation about benefits that resonate with younger employees.

Potential advantages for practices include:

  • Offering a family-focused benefit that goes beyond traditional retirement plans
  • Differentiating the practice in recruiting, especially for early-career team members
  • Providing a benefit that supports long-term financial wellness without increasing immediate payroll costs in the same way wages do

Unlike health insurance or retirement plans, contributions to a child’s savings account can feel highly personal and values-driven, something many employees notice and remember.

That said, employer participation comes with administrative, tax, and compliance considerations that not every practice will want or need to offer. The key is understanding how it fits with your existing compensation and benefits philosophy.

Planning Questions for Dentists and Practice Owners

Whether you’re thinking about Trump Accounts for your own family, your employees, or both, these questions are worth exploring:

  • How does this account compare to a 529 plan or other long-term savings vehicles?
  • Would offering contributions as an employer create meaningful value for your team?
  • How would contributions be structured, tracked, and communicated?
  • How does this fit with practice cash flow, growth plans, and existing benefits?

Because contribution rules and tax treatment intersect with other planning areas, this is not a decision to make in isolation.

Bringing It All Together

Trump Accounts represent a meaningful shift in how long-term savings for children can be structured, and for dental practices, they introduce a potential new way to support employees at key life moments. Handled carefully, they can be a powerful planning tool. Handled casually, they can add unnecessary complexity.

If you’d like help evaluating how Trump Accounts fit into your personal financial plan or whether offering them as a benefit makes sense for your practice, we’re here to help. We specialize in working with dental professionals and dental practices and can help you assess both the opportunity and the implications before moving forward.