Avoid IRS Dental Penalties with Jay Malik’s Year-End Checklist
As a dentist running a busy practice, your focus is naturally on patients. But when it comes to taxes, waiting until April is a recipe for costly mistakes. Avoid IRS dental penalties with Jay Malik’s year-end checklist, tailored to help dental professionals stay ahead of interest charges, compliance risks, and cash flow crunches. Jay Malik, a trusted tax strategist for dentists, emphasizes that the final quarter of the year is your last, best chance to legally minimize IRS exposure.
Review and Adjust with a Year-End Tax Lens
One of Jay’s most important strategies is reviewing your financials with a year-end mindset. That means checking your current revenue, expenses, and projections now—not in April. Avoid IRS dental penalties with Jay Malik’s year-end checklist by catching underpayments, misclassified deductions, or missed estimated payments early.
- Reconcile your books monthly through Q4
- Check if estimated tax payments match projected net income
- Verify all payroll filings and contractor classifications
Jay often reminds dentists that sloppy charts and loose bookkeeping invite red flags. Consistent quarterly reviews are your first defense. Why Dentists Should Review Practice Financials Every Quarter offers tips to simplify this review step.
Time Tax-Deductible Purchases Wisely
The end of the year can make or break your deduction strategy. Instead of rushing to buy equipment in December, assess the timing with your tax advisor. Avoid IRS dental penalties with Jay Malik’s year-end checklist by looking at accelerated depreciation opportunities and Section 179 expensing.
For example, purchasing a digital X-ray machine before December 31 could allow you to deduct the full cost. But only if purchased and placed in service before year-end. Explore timing strategies in more depth with Timing Equipment Purchases to Cut Year-End Dental Tax Bills.
Don’t Miss Retirement Contributions & Bonuses
Contributions to staff retirement plans must be calculated and processed properly before year-end to qualify for the current tax year. Miss the deadline, and you forfeit that deduction. Similarly, year-end bonuses for staff and owners can lower your taxable income—but only if issued and documented correctly.
Consider reading Best Retirement Plan Options for Dental Practices in the USA to uncover which plan gives you the best tax benefit for your practice.
Watch for IRS Red Flags in How You File
Jay Malik routinely advises dentists to not just file accurately, but also strategically. Filing as the wrong entity type or reporting income inconsistently leads to audits and penalties. Avoid IRS dental penalties with Jay Malik’s year-end checklist by reviewing your business structure and filing method annually.
Your S Corporation status, W-2 salary, and shareholder distributions should all be calibrated. If your salary is misaligned with profits, it can trigger scrutiny. Get ahead of the curve by exploring Maximize Dental S Corporation Income with Smart W2 Salary Strategies for guidance.
Plan Today to Avoid a Tax Season Crisis
As Jay Malik says, smart tax planning isn’t complex. It’s just consistent. A year-end checklist gives dentists the time to fine-tune, correct errors, and position their practice for the lowest legal tax bill. Dentists who wait until April don’t just lose money*. They often face surprise penalties, excessive interest fees, and unnecessary anxiety.
Want to simplify this? Schedule a one-on-one consultation with Jay Malik at Less Tax for Dentists, or visit lesstaxfordentists.com to access our latest resources.
Bonus tip—combine this checklist with Reduce Dental IRS Audit Risk with Jay Malik’s Quarterly Checks for stress-free filing all year long.
