Stop IRS Interest Charges Early with Jay Malik’s Proven Tactics
No dentist wants to open a letter from the IRS and see surprise interest charges. These costs can quietly grow over time, eating into your dental practice’s profits. That’s why it’s crucial to stop IRS interest charges early using the proven tactics Jay Malik has shared with hundreds of dentists nationwide.
Jay Malik often reminds dental professionals that IRS interest is not a simple late fee. It compounds daily on both the tax owed and any penalties not yet paid. This makes early action essential to protect your cash flow.
Understand Where IRS Interest Starts
Many dentists assume they’re safe as long as they file on time. But as Jay Malik explains, IRS interest begins from the due date of the return if any taxes are unpaid. This means even filing a return without paying in full can trigger interest.
Some common triggers include:
- Underestimating your quarterly tax payments
- Incorrect W-2 salary setup in an S Corporation
- Failing to deduct eligible business expenses like vehicle or home office use
To stay ahead, dentists should work with specialized professionals who understand dental practices’ financial rhythms.
Break the Interest Cycle With Smart Estimates
One of Jay Malik’s top tactics is adjusting your estimated tax payments to reflect current income shifts. For example, an expanding practice may cross a tax bracket mid-year. Waiting until April can result in a big underpayment, triggering both penalties and rising interest.
Instead, proactively monitor income and:
- Recalculate quarterly estimates with anticipated collections and expenses
- Automate payments through the Electronic Federal Tax Payment System (EFTPS)
- Reassess W-2 salary vs. S Corp distribution for maximum efficiency
Learn more about setting W-2 strategy in your dental S Corporation by reading this post on smart salary strategies.
Fix Interest-Triggering Mistakes Before They Compound
Filing late and making calculation errors are two of the biggest causes of IRS interest for dentists. As Jay Malik explains, dentists often unknowingly leave deductions on the table or misclassify expenses, which inflates liability.
To prevent that:
- Have a second CPA review to catch issues early
- Organize expenses with a dental-specific chart of accounts
- File taxes proactively, not just on time
Explore how you can avoid common filing pitfalls in our post on filing mistakes dentists make.
Take Advantage of IRS Payment Options Wisely
If interest has already started, Jay Malik suggests negotiating early. The IRS offers installment plans, but the longer you wait, the more interest racks up. Reach out as soon as you recognize a shortfall.
In serious cases, you may qualify for penalty abatement or an Offer in Compromise. But Jay emphasizes that these remedies work best when supported by accurate books and a strong case. Reviewing monthly financials helps build that foundation. Here’s why monthly reviews matter.
Work With a Dental Tax Expert Before Interest Starts
Stopping IRS interest charges early requires more than a general accountant. You need someone who understands how equipment deductions, retirement plans, and employee classifications fit into your unique situation.
Jay Malik’s firm specializes in helping dentists take proactive control of their tax timeline and financial growth.
Schedule a consultation with Jay Malik today through this meeting link.
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