Year-End Questions Every Dental Practice Owner Should Ask Their CPA

Key Takeaways

  • Are you taking full advantage of new 2025 tax law changes under OBBBA?
  • Have you reviewed your equipment, technology, or practice upgrades to see if they qualify for immediate expensing or bonus depreciation?
  • Is your business entity structure (S-Corp, LLC, etc.) still the most tax-efficient, or should it be revisited in light of new rules?
  • Are you maximizing retirement plan or retirement-savings contributions for yourself and your staff?
  • Have you updated your projected tax liability to reflect 2025 income and deductions and planned accordingly (deferring income, accelerating expenses, etc.)?

As a dental practice owner or manager, you’ve likely got a lot on your plate. But with the end of the year approaching, and with major tax law changes in 2025, now is a critical time to pause and evaluate your tax and financial strategy. Here are important questions to guide that review.

1. Has your tax situation changed under the One Big Beautiful Bill Act?

  • The OBBBA, signed into law July 4, 2025, reinstates 100% bonus depreciation for qualified assets placed in service after January 19, 2025.  
  • It also raises the maximum immediate write-off under Section 179 expensing to $2.5 million (with a phase-out threshold near $4 million).  
  • To qualify for bonus depreciation or Section 179 expensing in 2025, equipment and other assets must be placed in service, not just purchased, before year-end. Now is the time to confirm installation, delivery, or setup timelines.

Ask yourself: What assets did my practice acquire or place into service in 2025? Could those qualify for bonus depreciation or Section 179 expensing before year-end? 

2. Is now a good time to accelerate expenses (or defer income)?

  • Consider accelerating deductible expenses or postponing income when appropriate, which is a proven year-end strategy that is especially valuable during years with tax law changes.
  • For dental practices, that might include delaying invoicing or postponing elective procedures until the following year, or conversely, pre-paying next year’s office supplies, software subscriptions, or other recurring costs.

Ask yourself: Are there expenses you can bring forward, or revenues you might delay, to optimize your 2025 taxable income?

3. Is your retirement and benefits strategy up to date for you and your team?

  • Offering or contributing to retirement plans (like SEP IRAs, SIMPLE IRAs, 401(k)s, etc.) remains one of the most effective ways to reduce taxable income while building long-term wealth.  
  • For small businesses and practice owners, these can be particularly valuable, and may also help attract or retain skilled staff (especially relevant given the labor challenges many dental practices face).

Ask yourself: Have I (and does my practice) maximized contributions to retirement plans for 2025?

4. Is your business structure still optimized for tax efficiency?

  • The OBBBA reaffirmed favorable rules for pass-through entities, including permanent extension of the 20% Qualified Business Income (QBI) deduction for many small business owners.  
  • But changes to deductions, depreciation, and overall tax law may shift what entity type (S-Corp, LLC, etc.) makes the most sense.

Ask yourself: Given 2025 law changes and my 2025 income forecast, is my current entity structure still the most tax-efficient? If you’re not sure, or haven’t revisited this recently, this can be a high-impact check.

5. Do you have a clear 2025/2026 tax baseline and projection?

  • Some experts recommend preparing a pro forma tax return (or rough forecast) before year-end to understand where you stand.  
  • This helps you estimate your 2025 tax liability, consider estimated tax payments, and plan for choices like asset purchases, retirement contributions, and deductions.

Ask yourself: Have I run a full 2025 tax projection and used that to plan whether to accelerate deductions or defer income?

Why This Matters for Dental Practices

Dental practices operate in a unique business space: you face high overhead (equipment, office, supplies), regulatory and compliance demands, and sometimes variable revenue (e.g., patient volume, elective procedures). That makes year-end tax and financial planning not just interesting, but important to your financial stability.

Taking advantage of 2025’s favorable tax law changes, acting before December 31, and aligning your business structure and retirement/benefit planning properly can produce real savings. And those savings can directly improve your bottom line or fund future investment, such as upgraded equipment, expanded staffing, or enhanced patient care.

What You Should Do Now

  • Review any large purchases or equipment placed in service in 2025, and consider whether they qualify for bonus depreciation or Section 179 expensing.
  • Reach out to us about building a 2025 tax projection and scenario plan (accelerate expenses, defer income, maximize deductions).
  • Review retirement and benefit plan contributions (for you and your staff) to reduce taxable income and build long-term wealth.
  • Reassess your business entity structure (LLC, S-Corp, etc.) under the new tax rules.
  • Let us help you plan, because tax strategy isn’t only about saving money, it’s about building a stronger, more resilient practice.

Need Help? We’re Here for You.

If you run a dental practice and want to make sure you’re maximizing 2025 tax savings, leveraging new law changes, or simply getting your financial house in order, give us a call. At Edwards & Associates, we specialize in helping dental practices like yours with tax, accounting, and financial planning that fit the demands of your business. Let’s make 2026 your most financially sound and growth-ready year yet.

Why Dental Practices Should Gather W-9s Now

Key Takeaways

  • Collecting W-9s early prevents January delays and ensures your practice can meet the IRS’s January 31 1099 filing deadline.
  • A missing W-9 can block 1099 preparation and jeopardize your ability to deduct contractor expenses if audited.
  • Best practice is to request a W-9 before issuing any payment, and making it part of your vendor onboarding process eliminates year-end stress.
  • Dental practices work with many contractors who require 1099s, including IT providers, repair technicians, marketing consultants, and independent hygienists.
  • A proactive W-9 and 1099 workflow saves time, reduces compliance risk, and protects your practice from IRS penalties.

For dental practice owners and managers, January is one of the busiest times of the year. You’re closing out financials, preparing tax documents, and reviewing year-end reports. And add to that, 1099 filings are due January 31.

The most common bottleneck? Not having W-9s for every contractor and vendor who must receive a 1099.

As your accounting team, we can prepare and file your 1099s, but only if you’ve collected complete and accurate W-9 forms. Gathering these documents early, preferably at the start of every vendor relationship, protects your practice from penalties, delays, and last-minute stress.

Below is why this matters, who needs a 1099, and what steps you should take now to ensure a smooth January.

Why W-9s Matter for Dental Practices

The IRS requires you to issue a 1099-NEC to any contractor you paid $600 or more during the year for services. This applies to many people dental practices commonly work with, such as:

  • IT professionals
  • Marketing consultants
  • Independent hygienists or assistants
  • Repair technicians
  • Bookkeepers
  • Freelance designers
  • Contract labor of any kind

The W-9 provides the legal information needed to generate the 1099, including:

  • Legal business name
  • Tax classification
  • Taxpayer Identification Number (TIN or SSN)
  • Address

Without this completed form, we cannot file your 1099s, and you cannot deduct these expenses from your taxes.

The Danger of Waiting Until January

Many dental practices try to collect W-9s during the 1099 preparation season, and that’s where problems start.

  • Vendors ignore January requests because they’re overwhelmed.
  • Old email addresses bounce.
  • Contractors who have left the industry are hard to reach.
  • Practices spend hours chasing missing forms.
  • 1099 filings get delayed or become inaccurate.

Meanwhile, the IRS deadline does not move, and missing it risks late-filing penalties that can add up quickly. 

To avoid this, we recommend you add collecting a W-9 to your onboarding process for every new vendor.

Who Should Give You a W-9?

You should request a W-9 from:

  • Anyone you pay for services who is not an employee
  • Contractors paid via check, ACH, Venmo, Zelle, etc.
  • Attorneys (always required, even if paid less than $600)
  • Landlords (if applicable)
  • Single-member LLCs, partnerships, and most corporations
    • Exception: Most C- and S-corporations don’t need a 1099, but you won’t know unless you have their W-9 on file

Even if a vendor may not require a 1099, getting a W-9 ensures you have accurate records and protects you in case IRS rules or vendor classifications change.

What You Should Do Right Now

  1. Review your 2025 vendor list: Identify all individuals and companies paid for services this year.
  2. Gather W-9s for any missing vendors: If you don’t have one, request it immediately.
  3. Update your process for 2026 to include the following workflow:
    • Add W-9 requests to your vendor onboarding checklist
    • Store forms securely in one place
    • Notify your accountant when new vendors are added
  4. Send everything to your accounting team early: The sooner they have your vendor list and W-9s, the faster they can prepare accurate 1099s.

Let Us Handle Your 1099s

Our team prepares 1099s for dental practices every year, and we can make the process smooth and stress-free for you once you have gathered all your completed W-9s. If you’d like help reviewing your vendor list or putting a better W-9 process in place, we’re here to support you.

Contact us now to prepare for a smooth January 31 deadline and eliminate the scramble before it starts.