Tax services for Doctors

Preparing tax returns and IRS forms

Naturally, come tax time, we can prepare federal, state, multistate, and local returns — whether for you or your practice (or both). But we also provide a broad array of other tax services for doctors that can help you year-round with a variety of other filing requirements.

Let us assist you with tasks such as processing Forms 1099 for any independent contractors you engage; filing Schedule K-1 if your practice is structured as a partnership, limited liability company or S corporation; submitting estimated tax payments, if necessary; and complying with your federal and state payroll tax requirements.

Planning long-term tax strategies all year round

When it comes to taxes, procrastination can be costly. Minimizing tax liability generally isn’t something you can do at the last minute when filing your tax return. To reduce taxable income, and successfully claim all the deductions and credits you’re entitled to, you’ve got to plan ahead.

Of course, we recognize that tax planning for doctors isn’t easy when you’re managing a caseload, keeping up with the latest medical research and perhaps running your practice. So don’t go it alone — we can work with you throughout the year to refine your recordkeeping and tax accounting so that you’re able to take advantage of every available tax break.

In addition, just like medical science, tax rules, regulations and the law itself exist in a near-constant state of change. Why worry? As professionals providing small business tax services, we stay on top of all the latest legislative developments and IRS guidance, as well as changes at the state and local levels, so you can stay focused on your patients and practice. When tax-related risks or opportunities arise, you’ll be the first to know!

Assisting with a tax audit

Unfortunately, physicians and physician practices aren’t immune to tax audits — whether at the hands of the IRS or another taxing authority. We’ll do everything in our power to reduce your likelihood of being audited, but, if it comes to pass, we can guide you through the process and help minimize negative outcomes.

Properly allocating medical practice start-up expenses

Maybe you’re a doctor who’s ready to begin running a business. If you’re launching a new practice, you may incur several types of “pre-opening expenses.” These expenses are incurred during the period before the new practice is up and running and earning revenue.

Special federal income tax rules apply to different types of costs, and special tax return elections may be necessary to get the best treatment for your practice’s expenditures. Our tax services for doctors include specialized advice for start-ups, so you can get the most favorable tax treatment.

Choosing or changing business structure

Whether launching a new practice or operating an existing one, your choice of business structure has serious tax implications. It may even lead you to suffer unexpected negative tax consequences.

We can help you evaluate the pluses and minuses of sole proprietorships, partnerships, limited liability companies, S corporations, and C corporations so you make the most advantageous choice. If a change is in order, we’ll be there to guide you through the process.

Welcoming new practice partners

Because physician practices are often structured as partnerships, a Section 754 election may be a tax-smart move when a new doctor buys into the business. Under the Internal Revenue Code, a Section 754 election allows a partnership to adjust the basis (value) of the property within a partnership when a triggering event occurs.

This often-complex strategy deals with the tax basis of a partner’s share of the practice’s appreciated assets. As part of our wide-ranging tax advice for doctors, we can determine whether such a move would be beneficial and, if so, assist you in making the election.

Preparing for your retirement, and helping employees with theirs

Many Americans intend to work longer into their lives, and some studies show that doctors are no exception. In fact, one study in particular shows that many physicians expect to keep practicing medicine well beyond the average retirement age.

Although many doctors intend to retire relatively later in life, that doesn’t change the importance of careful retirement planning — particularly when it comes to the tax impact. You’ll likely have a large nest egg to enjoy; it would be a shame to unnecessarily lose a substantial percentage of it to taxes. According to the American Medical Association, “Identifying the type of income to take and when — and understanding how it’s taxed — can impact the overall efficiency of a physician’s [overall retirement] plan.” They’re right, and we can help!

Of course, your practice’s staff members also no doubt want to save for retirement in a tax-savvy manner. We can advise you on the tax benefits associated with the various retirement plan options available to medical practices.

Managing buyout and succession planning issues

Addressing the issue of retirement also brings to mind the challenge of partner buyouts and succession planning. If you’re one of multiple owners of a physician practice, you may have to make payments to owners who retire or leave the practice for other reasons (including because of disability or death) to liquidate their ownership interests.

A buy-sell agreement drafted by your lawyer can spell out how ownership interests will be transferred when an owner departs. The structure of the buyout can have major tax implications. We can advise on the tax consequences of various options so you can factor them into your structure choice.

If you’re a solo practitioner, you’ll have other succession planning issues. Maybe you want to gift or sell ownership of your practice to a child or other family member who’s also a doctor — or to sell to another physician, a hospital or another healthcare entity. Perhaps you want to execute a planned liquidation to help fund your retirement. There will be a tax impact to any route you take. Let us be your co-pilot.