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Kevin Bray

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Key takeaways: A heavily marketed tax package tells dentists to place their practice in a trust, run income through trust layers, and borrow against life insurance to live on “tax-free” dollars at effective tax rates far below what any practice owner normally pays. The IRS has formally called these arrangements abusive since 1997, courts have rejected them for more than four decades, and in 2025 a dentist who bought one was sentenced to 41 months in federal prison. This article explains the pitch, the law, and what actually works.

If you practice dentistry long enough, someone will eventually pitch you this structure at a seminar, a study club, or over dinner with a colleague: put your practice in a trust, let the trust “own” the income, add a charitable entity on top, buy cash-value life insurance inside the structure, and borrow against the policy to spend untaxed dollars. The promoter, often calling himself a tax strategist, promises a dramatically reduced effective tax rate, sometimes pitched in the single digits or low teens, plus bulletproof lawsuit protection.

We researched this structure thoroughly for our clients. Here is what the tax law, the Tax Court, and the Department of Justice have to say about it.

What is the trust tax shelter being pitched to dentists?

These packages are typically sold at practice-management and asset-protection seminars for a one-time fee of roughly $25,000 to $50,000. The promoter creates a layered structure: a “business trust” that purportedly owns the practice, a “family trust” that holds the home and personal assets, and often a “charitable trust” or private family foundation at the top of the stack. Practice receipts are deposited into the trust accounts, personal living expenses are recharacterized as trust expenses or charitable contributions, and the practitioner is told the income now “belongs” to the trusts. Cash-value life insurance is frequently layered in: the trust or an affiliated benefit plan buys a policy, and the practitioner takes policy loans to spend untaxed dollars.

Variations exist, including packages built around a “non-grantor, irrevocable, complex, discretionary, spendthrift trust” said to exclude income under section 643 of the Internal Revenue Code, but the architecture and the promises are the same.

The common thread in every version: the practitioner keeps doing exactly what he or she did before. The same dentist treats the same patients in the same operatories, lives in the same house, and spends the same money. Only the paper changes.

What does the IRS say about trust tax schemes?

The IRS has warned about these structures by name for nearly three decades. Notice 97-24, 1997-1 C.B. 409, describes the layered business-trust, family-residence-trust, and charitable-trust format and states that such arrangements will be disregarded or recharacterized. The IRS maintains a standing Abusive Trust Tax Evasion Schemes enforcement program and has featured trust schemes repeatedly in its annual Dirty Dozen list of tax scams.

Most recently, IRS Chief Counsel memorandum AM 2023-006 addressed the current “section 643 spendthrift trust” pitch and concluded that its central claim, namely that capital gains and extraordinary dividends allocated to corpus escape tax, rests on quoting the statute out of context. A non-grantor trust is a separate taxpayer that reports and pays tax on that income in full.

Why doesn’t putting your dental practice in a trust reduce taxes?

The structure fails under three settled doctrines, and any one of them is independently fatal.

  1. Assignment of income. Since Lucas v. Earl, 281 U.S. 111 (1930), income from personal services has been taxed to the person who performs the services, regardless of any contract or instrument directing payment elsewhere. Dental fees are quintessential personal-service income: they exist because a licensed dentist performed the procedure. A trust cannot perform dentistry, and no assignment, however elaborately drafted, moves that income off the practitioner’s return. For a dentist who remains the practice’s primary provider, this doctrine alone disposes of the structure.
  2. The grantor trust rules. Under Internal Revenue Code sections 671 through 677, a person who transfers property to a trust but retains control or benefit (powers over distributions, continued use of the residence, or effective access to the accounts) is treated as the owner of the trust, and the trust’s income is reported on that person’s individual return. The promoted packages depend on the practitioner retaining exactly this control, which is precisely what makes the trusts transparent for tax purposes.
  3. The sham-trust doctrine. Courts disregard trust arrangements that change nothing economically real. The leading case involves a dentist. In Markosian v. Commissioner, 73 T.C. 1235 (1980), the taxpayer conveyed his dental practice, his home, and even his “lifetime services” to a family trust, then continued practicing in the same office with the same equipment while the trust paid the household bills. The Tax Court held the trust was an economic “nullity” and taxed all of the income to him, identifying four factors: the taxpayer’s relationship to the property did not change; no independent trustee stood between the family and the funds; no other beneficiary economically benefited; and the taxpayer treated the trust property as his own. Every promoted package of this type exhibits all four factors by design.

The later cases are uniform. Zmuda v. Commissioner, 731 F.2d 1417 (9th Cir. 1984), disregarded a layered chain of purported business trusts as shams. Vlach v. Commissioner, T.C. Memo. 2013-116, involved a physician who routed clinic income through a promoter-designed web of trusts capped by a “charitable” entity; the Tax Court held all three trusts were shams, restored the income to the physician’s return, and sustained accuracy-related penalties.

Doesn’t the IRS have to pierce the corporate veil?

A common question, and the actual rule is less favorable to the taxpayer than veil-piercing. Piercing a corporate veil is a remedy a creditor must affirmatively establish. In the tax cases above, the courts simply treat the trusts as if they do not exist because they lack economic substance, and the burden in a deficiency case rests largely on the taxpayer to prove otherwise. The practitioner ends up where he or she started, taxed on all of the income, plus interest and penalties, less the promoter’s fee. Federal disregard also does not depend on state-law validity: a trust can be perfectly valid under state trust law and still be ignored for federal income tax purposes.

How do state laws treat trust-owned dental practices?

Every state regulates who may own and operate a dental practice, and the trust packages are usually sold with no attention whatsoever to these rules. Under the corporate practice of dentistry doctrine, many states permit only licensed dentists, or professional entities owned by licensed dentists, to own a practice at all. Colorado’s flat prohibition played a central role in the criminal case discussed below: the dentist’s own attorneys and CPAs told him a trust could not own a dental practice there, and he proceeded anyway. Other states permit a non-dentist entity, such as a dental support organization, to hold non-clinical assets and provide management services, but reserve the practice itself, the patient relationships, and all clinical decisions to licensed dentists. A promoter selling the identical trust package in all fifty states has, by definition, accounted for none of this, and an ownership structure that violates the practice act creates licensing exposure on top of the tax problems.

Washington illustrates the more permissive end of the spectrum, and the structure still fails there. Only a licensed dentist may practice dentistry in Washington, and corporations and similar unlicensed entities are prohibited from practicing dentistry or soliciting dental patronage, which is a gross misdemeanor, with each day treated as a separate offense (RCW 18.32.675). Since 2017, Washington has permitted an unlicensed entity such as a dental support organization to own or lease practice assets and provide business-support services, but the entity may not own patient records and may not interfere with the dentist’s clinical judgment (Senate Bill 5322 (2017), amending RCW 18.32.675). Even where a trust could lawfully hold equipment and a lease, Washington law keeps the dentistry itself, the activity that generates the fees, personal to the licensed dentist, which is exactly what makes the assignment-of-income doctrine fatal to the tax pitch.

The lawsuit-protection half of the package also depends on state law, and in most states it fails outright. The majority rule, which Washington follows by statute, is that a self-settled trust, meaning a trust a person funds for his or her own benefit, is void as against that person’s existing and future creditors (RCW 19.36.020). A trust a dentist funds and controls offers essentially no shield against the dentist’s own malpractice or business creditors, which is the principal risk these packages claim to address. A minority of states do authorize domestic asset protection trusts, but those regimes require an independent trustee, genuine surrender of control, and statutory waiting periods, and they carry exceptions for fraudulent transfers and certain creditor classes. That is nothing like the keep-total-control structure sold at the seminars.

State taxes are the final piece, and the trust does not help there either. Washington imposes no personal income tax, so any claimed effective-rate reduction for a Washington dentist is entirely a federal proposition, and Washington’s business and occupation tax falls on the practice’s gross receipts no matter what entity holds them. In states that do impose an income tax, trusts do not escape it: states generally tax trust income to resident trusts, grantors, or beneficiaries under their own conformity and residency rules, and a trust disregarded federally as a sham will generally be disregarded for state income tax as well. How any of these rules applies to a particular arrangement is a legal question for a licensed attorney in the relevant state.

Can you really borrow against life insurance tax-free?

Borrowing against a personally owned life insurance policy funded with after-tax dollars is legitimately tax-free while the policy remains in force. That kernel of truth is what the pitch is built on. The abuse lies in attempting to fund the policy with untaxed dollars, and the courts have rejected every variation:

  • Wegbreit v. Commissioner, T.C. Memo. 2019-82, aff’d, No. 20-1306 (7th Cir. Dec. 29, 2021): a business interest was moved into a trust that purchased an offshore private-placement life insurance policy, and the owner took over $3 million in “policy loans.” The trust was held a sham, the loans were taxable income, and the 75 percent civil fraud penalty was sustained.
  • Neonatology Associates, P.A. v. Commissioner, 115 T.C. 43 (2000), aff’d, 299 F.3d 221 (3d Cir. 2002): physicians deducted contributions to a welfare-benefit plan funneling money into cash-value life insurance for their own benefit. Deductions denied; penalties sustained.
  • Curcio v. Commissioner, 689 F.3d 217 (2d Cir. 2012): deductions denied for a section 419 plan funding cash-value policies for owners; employees may not “disguise their investments in life insurance as deductible” expenses “when those investments accumulate cash value for the employees personally.” Twenty percent negligence penalties upheld.
  • De Los Santos v. Commissioner, 156 T.C. No. 9 (2021): premiums paid by a physician’s S corporation under a split-dollar arrangement produced taxable compensation income to the physician.

The consistent result: pre-tax dollars in, “tax-free” loans out, does not survive examination. Either the deduction is denied going in, or the loan is recharacterized as income coming out, and sometimes both, with penalties.

What if the dentist is not the main provider?

Promoters sometimes adjust the pitch for owners who have stepped back from daily clinical work: if associates generate the production, the argument goes, the practice income is no longer personal-service income and can safely belong to the trust. The variation removes the structure’s weakest point but not its fatal ones.

It is true that the assignment-of-income doctrine attaches to income from the taxpayer’s own services, so revenue produced by associate dentists looks more like business income than assigned earnings. Everything else survives intact. The grantor trust rules pull the income back to any owner who retains control or benefit over the trust regardless of who treats patients, and retained control is the design of every promoted package. The sham-trust doctrine likewise turns on economic reality rather than on clinical production. Wegbreit is the clearest illustration: the asset moved into the trust there was a financial-services business interest, personal services were never the issue, and the trust was still held a sham with fraud penalties. In addition, any services the owner does continue to perform, including management and oversight, require reasonable compensation reported and taxed to the owner personally. “Not the primary provider” must be factually true and documented, not merely asserted.

Even a version executed without any abusive element fails to deliver the promised rate, because federal trust brackets are sharply compressed. A genuinely irrevocable non-grantor trust with an independent trustee is a real taxpayer, and for 2026 it reaches the top 37 percent federal rate at only $15,650 of retained taxable income, with the 3.8 percent net investment income tax applying above the same threshold, while a married couple filing jointly does not reach the 37 percent bracket until taxable income of roughly $640,000. Retaining income in the trust raises the tax bill relative to individual ownership. There is no configuration, primary provider or not, in which this structure legitimately produces the advertised rates. The low rate in the pitch comes entirely from the abusive elements.

Where a trust genuinely fits an owner who has stepped back from production is wealth transfer, not income tax reduction: gifts or sales of non-voting interests in a properly structured entity to irrevocable trusts to move future appreciation out of the taxable estate. Those are established estate-planning techniques in which someone still pays income tax at ordinary rates each year.

Can you shift income to a spouse or children instead?

Assignment to a spouse is the original losing fact pattern: Lucas v. Earl itself involved a contract assigning half of the taxpayer’s earnings to his wife, and the Supreme Court taxed all of it to the earner, holding that the fruit cannot be attributed to a different tree from that on which it grew. For most married couples the exercise is also pointless, because a joint return already combines both spouses’ income at a single marginal rate. Paying a spouse a wage for real work in the practice is legitimate, but the wage lands on the same joint return and adds payroll tax, although it can support retirement plan contributions and certain benefits.

Shifting income to children runs into two separate walls. First, service income cannot be assigned to anyone, children included. Second, investment or trust income can be shifted in principle, but only by genuinely giving away the income-producing property itself. Under Helvering v. Horst, 311 U.S. 112 (1940), a taxpayer who keeps the property and merely directs its income to a family member is still taxed on that income; the tree must go with the fruit. Even completed gifts largely fail for minors because of the kiddie tax under section 1(g): a child’s unearned income above a small indexed threshold (roughly $2,700) is taxed at the parents’ top marginal rate, whether it arrives directly or as trust distributions, and the rule reaches children under 18 and most full-time students under 24. What remains legitimate is a wage paid to a child for real, age-appropriate work at a market rate, documented properly. Where family members hold real equity, section 1366(e) and the family partnership rules allow the IRS to reallocate income back to any family member who is undercompensated for services actually rendered.

Income the trust retains is taxed at compressed trust brackets. Income the trust distributes is taxed to the beneficiaries, with the kiddie tax applying to minors. Income of a trust the owner controls is taxed to the owner. In no branch of that decision tree does the income go untaxed. The only questions are whose return it lands on and at what rate, and none of the answers comes close to the rates in the sales pitch.

What happens to dentists who use these schemes?

The consequences are no longer hypothetical or merely civil. In 2016, Dr. Ryan Ulibarri, owner of a family dental practice in Fort Collins, Colorado, paid $50,000 for precisely this package: a business trust, a family trust, a charitable trust, and a private foundation. He moved the practice into the business trust and ran several million dollars of practice income through the structure from 2017 to 2022, deducting personal expenses (mortgage, vacations, boats) as trust and charitable expenses. He pleaded guilty to six counts of tax evasion in February 2025 and in June 2025 was sentenced to 41 months in federal prison, three years of supervised release, a $150,000 fine, and approximately $1.6 million in restitution. His own attorneys and CPAs had warned him that Colorado law did not permit a trust to own a dental practice; proceeding anyway featured prominently in the government’s case.

Promoters fare no better, and their client lists become the government’s audit roadmap. In June 2026, a federal jury convicted four promoters who sold the same four-entity trust package nationwide, marketed as eliminating tax on “upwards of 98 percent” of business profits, in a scheme the Department of Justice tied to roughly $40 million in tax loss. When a promoter is investigated, the IRS routinely obtains customer files, and purchasers become examination candidates. Promoters are also subject to civil penalties under section 6700 for promoting abusive tax shelters.

For the practitioner, the exposure looks like this: on examination, the trusts are disregarded, all income returns to the individual, and the resulting deficiency carries interest plus a 20 percent accuracy-related penalty (section 6662) or, where intent is established, a 75 percent civil fraud penalty (section 6663). Fraud leaves the statute of limitations open indefinitely, so exposure never ages out, and the most serious cases are referred for criminal prosecution under section 7201. Reliance on the promoter’s marketing materials or in-house opinion letters has repeatedly failed as a penalty defense; courts expect advice from an independent professional, not from the seller of the arrangement.

One more note on the effective-rate claims used in the sales pitch: a practice owner producing typical dentist-owner income cannot reach the single-digit or low-teens effective federal rates these pitches advertise through legitimate planning; the arithmetic does not get there. A reported rate at that level is a red flag for the structure itself, not evidence that it works.

What are legitimate tax strategies for dentists?

Practitioners drawn to these packages usually have substantial unrealized savings available through conventional, defensible planning: entity structure and compensation optimization; qualified retirement plans, where a 401(k) with profit sharing paired with a cash balance defined-benefit plan can generate six-figure annual deductions the law intends; health savings accounts; employment of family members who perform real work at market wages; cost segregation where the practitioner owns the building; and properly documented charitable giving. None of these produces a single-digit effective rate on a high income, because nothing legitimate does, but they produce substantial, durable savings that survive examination.

The bottom line

The trust-plus-life-insurance package is an abusive arrangement with a documented losing record spanning more than four decades, a standing IRS enforcement program aimed at it, and recent felony convictions of both a purchasing dentist and the promoters of a materially identical product. If someone presents this structure to you, have the materials reviewed by an independent CPA and a tax attorney before signing anything or paying any fee. Ten minutes of review is considerably cheaper than 41 months.

Questions about a structure you have been pitched, or about what defensible tax planning looks like for your practice? Contact Dental Accounting Group. We work exclusively with dental professionals, and we would be glad to run projections for your situation.

This article is provided for general informational purposes only and is based on federal tax authorities, public court records, and government publications available as of the date above, which are subject to change. It is not, and should not be relied upon as, tax, legal, or accounting advice for any specific taxpayer, and it is not an opinion on the laws of any state, including professional licensing, practice-ownership, trust, or asset-protection law; those questions should be directed to a licensed attorney. No specific promoter, company, or product is evaluated or referenced in this article. This content was prepared in accordance with the AICPA Statements on Standards for Tax Services. It was not written to be used, and cannot be used, for the purpose of avoiding penalties that may be imposed on any taxpayer. Application of the authorities discussed to any specific situation requires a separate engagement and analysis of that taxpayer’s facts. Positions taken on any tax return remain subject to examination by taxing authorities.

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INSURANCE 1099 MISREPORTING: IRS NOTICES HITTING DENTAL PRACTICES

*If your practice has received an IRS notice, such as an IRS CP2000 notice or similar income mismatch letter, you are not alone. A growing number of dental practices across the country are receiving these notices as a direct result of errors on 1099s filed by dental insurance companies — not errors made by the practice.

Insurance companies report payments made to dental practices each year on Form 1099-MISC or 1099-NEC. The Internal Revenue Service cross-references those third-party reports against the income reported on your tax return for that tax year. When the numbers don’t match, the IRS sends a 1099 income mismatch IRS notice — even when the practice reported its income correctly.

We are seeing this issue with increasing frequency among our clients, and the burden of resolving it falls entirely on the practice owner. For many business owners, this creates unnecessary stress during tax season and tax time. Understanding why these discrepancies occur and how to protect yourself is essential.

Why These Mismatches Happen

Insurance companies handle payment data for thousands of providers. Clerical errors are a well-documented problem, and dental practices are particularly susceptible to a handful of specific scenarios:

ScenarioWhat HappensWhy It Matters
EIN / SSN MismatchAn insurance company’s records incorrectly associate a PLLC’s Employer Identification Number (EIN) with another provider’s Social Security Number. Payments made to one provider end up reported under a different taxpayer’s identification number.The IRS may flag your return as underreporting income that was actually paid to — and reported by — someone else entirely.
Claim Payment MisreportingInsurance payments related to claims adjustments, retroactive fee schedule changes, or year-end true-ups are sometimes reported in the wrong tax year or duplicated across multiple 1099s.Your reported income may be lower than what the insurer filed, triggering an IRS mismatch notice even though no income was missed.
Practice Sale or AcquisitionWhen a practice changes hands mid-year, insurance companies often struggle to split 1099 reporting cleanly between the old and new taxpayer. Payments may be reported entirely under one EIN when they should be split, or reported under the wrong entity after a transition.Both the selling dentist and the acquiring dentist can receive IRS notices for income that belongs to the other party. Transition years are the highest-risk period.
Name / Entity ChangesA change in practice name, entity type, or banking information can cause an insurer’s records to fall out of sync. Payments made post-transition may be reported under the old entity’s information.The result can be a 1099 issued to an entity that no longer exists, or duplicate reporting under both the old and new entity.

The Real Cost to Your Practice

Receiving an IRS notice does not mean you did anything wrong. But it does mean you have a problem to solve — and that takes time and money.

Practice owners who receive income mismatch notices typically face:

  • CPA or advisor time: Researching the discrepancy, gathering copies of all tax documents, and preparing a written response to the IRS requires professional time and often a consultation with a tax advisor or CPA.
  • Owner time: Gathering records, reconciling invoices, reviewing pay stubs where applicable, and coordinating with the insurance company to obtain corrected 1099s.
  • Stress and uncertainty: Even when the error is clearly the insurer’s fault, IRS notices create anxiety and distraction.
  • Potential penalties and interest: If an IRS notice is not handled properly, the agency may assess taxes, penalties, and interest, and in some cases apply backup withholding rules if taxpayer information is incorrect.

The error originated with a third-party issuer. The cost of resolving it falls on you. This is exactly the kind of issue that proper recordkeeping and proactive review are designed to minimize.

What You Can Do to Protect Your Practice

1. Keep All 1099s from Insurance Companies on File

Every 1099 you receive from a dental insurance company should be saved — permanently digitized and organized by tax year. Do not discard these documents after filing your income tax return. If the IRS questions your income years later, these records are essential for clarification.

DAG Recommendation: Retain all 1099s for a minimum of 7 years. This supports audit readiness and aligns with IRS lookback periods under current tax law.

DAG Recommendation: Retain all 1099 forms received from insurance companies and other healthcare payers for a minimum of 7 years. This covers the IRS’s extended 6-year lookback period for substantial understatement of income (IRC §6501(e)) plus a one-year buffer. Digitize and store them in a consistent folder structure organized by tax year.

2. Reconcile Your 1099s Against Your Practice Management Software

Before your tax return is filed, compare all 1099 totals against your internal records. Any mismatch should be addressed immediately with the insurer, and a corrected form should be requested if needed.

If a 1099 appears to overstate your income, contact the insurance company’s provider relations department immediately and request a corrected Form 1099. Document all communications in writing.

3. Flag Transition Years for Extra Attention

If your practice was sold, acquired, or restructured in the last two years, notify your DAG advisor so we can review your 1099 reporting carefully during the tax preparation process. Transition years are the most common source of multi-party mismatches, and the window to correct errors is narrow.

This is also true if you changed entities — for example, converting from a sole proprietorship to a PLLC — or if you updated your EIN or banking information with any insurance company during the year.

4. Respond to IRS Notices Promptly and with Documentation

If you receive an IRS CP2000 or similar income mismatch notice, do not ignore it. The IRS is not necessarily asserting that you owe money — it is asking you to explain a discrepancy. A well-documented response that shows your reported income, your 1099s, and your practice management records can resolve the issue without any tax liability.

Forward any IRS notice to your DAG advisor as soon as you receive it. Response deadlines are typically 60 days from the notice date and cannot be extended without IRS approval.

5. Verify Your Taxpayer Information on File with Each Insurer

Once per year — or any time your practice changes its name, EIN, banking information, or entity structure — contact your major insurance payers to confirm that the taxpayer name and EIN on file match your current legal entity. A mismatch in the insurer’s records is the root cause of most EIN/SSN confusion errors.

Request written confirmation and keep it on file alongside your 1099s for that year.

The Bottom Line

Insurance company 1099 errors are a third-party issue, but the responsibility for resolving them falls on the practice owner. The dental practices that avoid prolonged IRS issues are those with organized records, consistent reconciliation processes, and proactive CPA support.

If you have received an IRS notice, need clarification, or want to strengthen your reporting process, contact your DAG advisor. We can help you review documentation, respond to the IRS, and reduce the risk of future discrepancies.

Disclaimer: This article is prepared by Dental Accounting Group (DAG) for general informational purposes only and does not constitute legal, tax, accounting, or investment advice. Information is based on sources believed to be reliable as of the publication date but may become outdated or superseded. Tax laws and regulations are subject to change. Individuals and businesses should consult with a qualified professional advisor regarding their specific circumstances before making any financial, tax, or legal decisions.
© 2026 DG Accounting Professionals LLC. All Rights Reserved.

Dental Accounting Group  •  Bellevue, WA  •  cpa4dds.com  •  425.216.1612

© 2026 DG Accounting Professionals LLC. All Rights Reserved.

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Save More. Do More. Stay Independent. — How Clients Use BEST for Dentistry to Reduce Operating Expenses

Published by Dental Accounting Group | The Successful Dentist™ | March 2026 | Partner Spotlight

As your trusted accounting partner, we are always looking for the best ways to help your dental practice reduce overhead costs, improve cash flow, and operate more efficiently. That’s why we’re excited to highlight a partnership that’s already delivering real, measurable savings for independent dental practices — helping practice owners strengthen their bottom line while maintaining high-quality patient care and a strong patient experience.

What Is BEST for Dentistry?

BEST for Dentistry (Building Everyone’s Success Together) is a group purchasing and practice management solutions network built specifically for independent dental practices and dental offices. Its mission is simple: level the playing field against corporate dentistry by giving independent offices access to the same buying power, lower prices, resources, and expertise that large DSO groups enjoy.

Premium membership provides access to:

  • Dental Supplies & Equipment
  • PPO Solutions
  • Compliance Training
  • Dental Labs
  • Group Health Insurance
  • Retirement Benefits
  • Human Resources Support
  • Tax & Financial Experts
  • Patient Financing
  • Payment Processing
  • Practice Technology
  • Front Office Solutions

These tools support better inventory management software, improved efficiency at the front desk, and a more connected digital space for managing your dental services and daily operations.

What Are Practices Actually Saving?

Below is an anonymized breakdown of average savings per participating client, organized by solution category. Only practices actively using each solution are included in that category’s average.

Solution CategoryVendor PartnerClients UsingAvg. Savings / ClientYear 1 Net*
Dental SuppliesBurkhart10 of 16$27,213$27,213
Aligner SolutionsSpark2 of 16$5,281$5,281
Compliance Trng.Etactics4 of 16$4,219$4,219
Implant SystemsStraumann5 of 16$2,794$2,794
* Year 1 Net: DAG clients receive their first 12 months of membership free (promo code: DAG), so Year 1 savings equal gross savings with no membership fee deducted. Standard annual membership is $2,189/yr ($199/mo). Year 2+ net savings = Avg. Savings − $2,189.

Overall Average — Per Active Client

Across all solution categories combined, here is what the average participating practice saved — before and after the annual membership fee. These savings can significantly impact profit margins, reduce variable costs, and improve overall practice profitability.

Avg. Gross Savings / ClientAnnual Membership FeeAvg. NET Savings / Client
$26,200Active clients (12 of 16)−$2,189After Year 1 free trial$24,014Year 2+ (after membership fee)

Note: Averages reflect 12 of 16 participating practices actively utilizing at least one BEST solution (CY2024–Q3 2025). Results will vary based on practice size, services used, and purchasing volume.

How to Become a Member

Join our network of independent dental practices to boost practice success, streamline operations, and maintain autonomy — while unlocking new revenue opportunities and gaining access to tools that improve efficiency across your team members and practice manager workflows.

Participation can also support better scheduling, reduced chair time gaps, and more effective handling of upcoming appointments, insurance companies, and treatment plan coordination.

  1. Visit BESTforDentistry.com
  2. Click “JOIN NOW”
  3. Complete quick registration
  4. Select monthly payment option and enter code “DAG” to receive first 12 months free
  5. Our team will contact you to complete your onboarding

Questions? Contact us: 877-669-6320  |  bestfordentistry.com  |  in**@**************ry.com

DAG has not received financial benefits for endorsing BEST for Dentistry. They are our preferred group purchasing partner because of the measurable value delivered to independent dental practices. Results will vary based on practice size, services used, and purchasing volume. This article is for informational purposes only.
© 2026 DG Accounting Professionals LLC. All Rights Reserved.

Dental Accounting Group  •  Bellevue, WA  •  cpa4dds.com  •  425.216.1612

© 2026 DG Accounting Professionals LLC. All Rights Reserved.

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Cyber Security News: Fake PDF Reader Scam — Make Your Office Admin Aware!

Published by Dental Accounting Group | The Successful Dentist™ | March 2026

Article Body

CRC Technologies collaborates with DAG to help keep our clients informed on the latest cyber threats and cybersecurity risks impacting dental practices. CRC provides managed IT services, backed by over two decades of industry experience, to over 375 dental practices across the Pacific Northwest, helping protect sensitive data, personal information, and critical systems from cybercriminals and attackers.

Fake PDF Reader Scam: Make Your Office Admin Aware!

CRC is seeing an uptick in two common attack methods targeting small businesses: “free” PDF readers and malicious Excel files. In the first case, someone searches online for a PDF reader, converter, or “editor” and ends up downloading software that looks legitimate but is actually bundled with malware, spyware, or other malicious code. These fake PDF converters and fake sites often mimic official websites or trusted brand elements, making them difficult to identify. These installers can add hidden background tools that track activity, steal passwords, capture login credentials, and create a foothold for a larger compromise or data theft involving sensitive information and bank accounts.

With Excel files, we’re seeing more suspicious documents designed to trick users into enabling risky features. These often arrive by email and look like routine spreadsheets labeled as invoices, statements, payroll, or reports, but then prompt you to “Enable Content” or “Enable Macros” to view the file properly. That prompt is one of the biggest red flags: macros can run malicious code on your computer and are a common malware delivery method used by hackers, threat actors, and cybercriminals. If an Excel file is asking to enable macros or is throwing a malware alert, stop and do not proceed.

CRC’s security protections are designed to detect and block these threats by scanning downloads, suspicious PDFs, and malicious PDF files, and quarantining anything that matches known malicious patterns or behavior. This includes monitoring for ransomware, trojans, and spyware that may attempt to connect to remote servers or compromise personal data. If you see a malware alert, that means the protection worked. Do not click “allow,” “override,” or try to install a different “free” version to get around the warning.

Practical Guidance

A practical tip: in many cases you don’t need a “free PDF editor” at all. Modern browsers like Firefox can open a PDF and allow basic text entry and simple edits (and you can always use approved tools your IT team provides). Please avoid installing any free software from the internet unless it’s explicitly approved, and do not open Excel files that trigger a warning or request macros. If something appears urgent but gets blocked, contact your IT support or CRC so we can validate it safely and provide an approved, secure option. 

Please avoid installing any free software, online file converters, or free online converters from the internet unless it’s explicitly approved. These tools are often used by attackers as a gateway for malware, identity theft, and credential theft. As a best way to protect your systems, rely on approved antivirus software, secure environments, or even sandbox tools like Browserling to safely review suspicious PDFs when needed.

Do not open suspicious documents or malicious PDFs that trigger a warning or request macros. If something appears urgent but gets blocked, contact your IT support or CRC so we can validate it safely and provide an approved, secure option. Taking extra caution can prevent a privacy nightmare and protect your practice from serious cybersecurity incidents.

Contact CRC Technologies

“At CRC, we’re monitoring this issue closely. If you want a list of recommended protections and more info on spotting these scams, please contact us at he**@******hs.com”Your security is our priority.— James Cosgrove, CEOCRC (Computer Resource Corporation)P (206) 441-5042  |  F (206) 374-2264  |  Direct (206) 254-02221125 N 140th St Seattle WA 98133
DAG has not received financial benefits for endorsing CRC. They are our preferred vendor for dental practice IT services in Washington because they are the best at what they do — serving the unique needs of dental practices!
© 2026 DG Accounting Professionals LLC. All Rights Reserved.

Dental Accounting Group  •  Bellevue, WA  •  cpa4dds.com  •  425.216.1612

© 2026 DG Accounting Professionals LLC. All Rights Reserved.

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Cryptocurrency & Digital Assets: New Tax Clarity for Dental Practice Owners in 2026

Published by Dental Accounting Group | The Successful Dentist™ | March 2026

The federal landscape for cryptocurrency and digital assets has shifted significantly with recent legislation, bringing updated cryptocurrency tax rules and expanded IRS guidance in the United States. For dental practice owners who hold, invest in, or accept digital assets or virtual currency, here is a summary of key developments and tax implications for your specific situation.

Key Changes from the One Big Beautiful Bill Act

Clearer Capital Gains Treatment:

Digital assets held for more than one year continue to qualify for long-term capital gains tax rates, while short-term gains remain taxed as ordinary income and subject to ordinary income tax rates. Documentation of your cost basis, purchase price, and fair market value of your crypto for every transaction is critical to determine taxable gain, capital loss, and overall taxable income for federal income tax purposes.

De Minimis Exclusion:

Small personal-use cryptocurrency transactions under a defined threshold may be excluded from gain recognition, reducing the reporting burden for minor crypto transactions. However, accurate transaction information and tracking of the fair market value of the cryptocurrency at the time of use are still important for tax reporting and compliance with IRS rules.

Business Payments:

Dental practices that accept cryptocurrency as payment for services must recognize ordinary income equal to the fair market value of the asset on the date received. This creates a taxable event and contributes to gross proceeds that must be reported on your income tax return. Proper tracking software, crypto tax software, or a crypto tax calculator can help document market value, crypto income, and related business expenses for tax purposes.

Retirement Accounts:

Clarity has been provided on the use of digital assets within self-directed IRAs and 401(k) plans, though significant compliance requirements apply. These assets are still treated as capital assets, and transactions may require reporting through forms such as Schedule D depending on dispositions of capital assets within investment accounts or retirement accounts.

What Dental Practice Owners Should Do Now

  • If you hold cryptocurrency personally or in your practice, ensure you have accurate cost basis records, transaction information, and documentation of all cryptocurrency transactions, including those involving cryptocurrency exchanges or a crypto exchange platform.
  • If your practice has accepted cryptocurrency as payment, consult your DAG advisor or tax advisor to ensure proper income reporting, completion of the appropriate IRS form or tax form, and alignment with current crypto tax forms and federal income tax return requirements.
  • Do not assume that crypto transactions are invisible to the Internal Revenue Service. Reporting requirements have expanded significantly, including new cryptocurrency reporting standards, new tax forms, and increased oversight of financial interest in such assets.
  • If you are involved in activities such as crypto mining, crypto sales, or hard fork events, these may trigger additional taxable events, crypto income, or crypto losses that impact your tax bill and overall tax return.
  • Speak with your DAG advisor before making any large crypto transactions or changes to your investment accounts, as the tax implications, capital gains tax exposure, and treatment of digital assets can differ significantly from traditional investments such as real estate.
Disclaimer: This article is for general informational purposes only. Cryptocurrency tax rules are complex and subject to further IRS guidance. This is not legal, tax, or investment advice. Consult a qualified professional before making decisions involving digital assets.
© 2026 DG Accounting Professionals LLC. All Rights Reserved.

Dental Accounting Group  •  Bellevue, WA  •  cpa4dds.com  •  425.216.1612

© 2026 DG Accounting Professionals LLC. All Rights Reserved.

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Trump Accounts: A New Savings Tool for Families

Published by Dental Accounting Group | The Successful Dentist™ | March 2026

The One Big Beautiful Bill Act, signed into law in 2025, introduced the Trump Account — a new tax-deferred savings vehicle designed to encourage long-term wealth building for eligible children across the United States. This new way to approach savings plans is part of broader tax law changes aimed at supporting financial stability and providing a financial head start for the next generation. Here is what dental practice owners and their families need to know.

Key Account Details

Account TypeTax-deferred (similar to a traditional IRA and other individual retirement accounts, but specifically structured as a type of account for children under age 18)
Who Can OpenLegal guardian, parent, adult sibling, or grandparent — in that order of priority — provided the child has a valid Social Security number
Opening DateAccounts may be opened beginning July 4, 2026, under the Big Beautiful Bill Act
Govt. Contribution$1,000 one-time pilot program contribution for eligible children born January 1, 2025 through December 31, 2028, funded by the federal government
Annual LimitUp to $5,000 per calendar year combined from employers and individuals (no income limits for contributors), including additional contributions from family members
Employer PortionUp to $2,500/year (inflation-adjusted after 2027); excludable from the employee’s gross income
Deductible?No. Individual contributions are non-deductible and are treated as gifts for gift tax purposes under the current tax code
InvestmentsMust be invested in eligible investments such as low-risk U.S. index funds or mutual fund options tied to a stock market index, with attention to expense ratio and long-term investment accounts performance
DistributionsFollow traditional IRA and traditional individual retirement account rules after age 18; distributions are taxed as ordinary income above contributed basis, and may be subject to capital gains taxes depending on structure
Penalty-Free UseEducation expenses such as college tuition, first home purchase (up to $10K lifetime), birth/adoption (up to $5K), or age 59½+; designed to support a child’s future through the power of compound growth and long-term investment earnings

Next Steps: What to Do Mid-Year

While Trump Accounts cannot be opened until July 4, 2026, now is the time to prepare for this new savings account structure and evaluate how it fits within broader savings accounts, retirement accounts, and wealth transfer strategies.

  • File the appropriate IRS form (Form 4547) with your personal tax return if your child was born between 2025 and 2028 to secure eligibility for the $1,000 government contribution tied to this pilot program.
  • Visit www.trumpaccounts.gov to register for email updates and receive notification when the portal is live.
  • If you are an employer, evaluate whether to offer a Trump Account program as part of your employee benefits. This requires a separate written plan and must apply to all employees regardless of income or ownership status, similar to other qualified general contributions programs.
  • Consider how employer contributions, additional contributions, and long-term annual return assumptions may support your child’s Trump Account and overall financial planning strategy.
  • Consult your DAG advisor to determine whether a Trump Account fits within your broader tax planning, Roth IRA conversions, and wealth transfer strategy for your family and future generations.
Disclaimer: Trump Account rules are still being finalized by the IRS and Treasury. Information in this article is based on the legislation as currently enacted and is subject to change. This is not legal or investment advice. Consult your DAG advisor for personalized guidance specific to your situation.
© 2026 DG Accounting Professionals LLC. All Rights Reserved.

Dental Accounting Group  •  Bellevue, WA  •  cpa4dds.com  •  425.216.1612

© 2026 DG Accounting Professionals LLC. All Rights Reserved.

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New! DAG Survey Dashboards Now Live

Published by Dental Accounting Group | The Successful Dentist™ | April 2026

Dental Accounting Group is proud to announce the launch of two powerful new interactive dashboards built from our annual survey data, designed to support dental practice benchmarking, KPI tracking, and stronger visibility into your practice’s financial health and overall performance.

Financial Survey Dashboard

Our comprehensive Financial Survey Dashboard puts decades of Washington State dental practice benchmarking data at your fingertips. Compare your practice overhead, production, total revenue, and profitability against peers across general practice and specialty categories. These performance metrics provide valuable insight into your overhead ratio, operating expenses, and profit margins while helping you evaluate your practice’s performance against industry averages.

Access the dashboard:

Financial Survey Dashboard

Payroll Analytics Dashboard

Our Payroll Analytics Dashboard provides detailed compensation benchmarking for dental hygienists (RDH), dental assistants (DA), front office administrators, and office managers across the Greater Puget Sound and Washington State. This data supports better decisions around staff productivity, employee turnover, and resource allocation while helping dental practice owners stay competitive in today’s dental industry.

Access the dashboard:

Payroll Analytics Dashboard

Whether you are evaluating your overhead structure, preparing for a practice sale or acquisition, or making compensation decisions in a competitive hiring market, these dashboards give you the Washington State–specific data you need to benchmark accurately and plan strategically. With clearer insight into key metrics such as total production, collection rate, and cash flow, dental practices can improve operational efficiency, strengthen patient retention, and support sustainable growth.

Disclaimer: This newsletter is prepared by Dental Accounting Group (DAG) for general informational purposes only and does not constitute legal, tax, accounting, or investment advice. Information is based on sources believed to be reliable as of the publication date but may become outdated or superseded. Tax laws and regulations are subject to change. Individuals and businesses should consult with a qualified professional advisor regarding their specific circumstances before making any financial, tax, or legal decisions.
© 2026 DG Accounting Professionals LLC. All Rights Reserved.

Dental Accounting Group  •  Bellevue, WA  •  cpa4dds.com  •  425.216.1612

© 2026 DG Accounting Professionals LLC. All Rights Reserved.

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⚠️  Legal Disclaimer: This article is shared by Dental Accounting Group for general informational purposes only and does not constitute legal advice. The content was prepared by Tyler Jones of Helsell Fetterman LLP. Dental practice owners, DSOs, and associate dentists should consult a qualified attorney regarding their specific agreements and circumstances before taking action.

 

Washington Significantly Restricts Noncompetition Agreements: What Dentists and Their Employers Need to Know

By Tyler Jones, Helsell Fetterman LLP  |  Shared by Dental Accounting Group  |  March 2026

Washington has enacted sweeping changes to the enforceability of noncompetition agreements that will directly impact dental practices, associate dentists, and dental service organizations (DSOs). House Bill 1155, effective June 30, 2027, will render most noncompetition covenants void and impose new compliance obligations on both employers and workers.

This is a significant development for dental practice owners who have historically relied on noncompete provisions to protect patient goodwill, referral relationships, and workforce stability. Here is what you need to know.

 

Key Takeaways

Topic

Key Provision

Effective Date

June 30, 2027. Applies to noncompetition agreements regardless of when they were signed.

Most Noncompetes Void

Most noncompetition agreements — especially those involving employees — will be unenforceable beginning June 30, 2027.

Expanded Definition

The law broadly defines “noncompetition covenant” to potentially include restrictions on accepting business from clients, patients, or customers — capturing provisions that have historically straddled the line between noncompetition and nonsolicitation.

Patient Restrictions

Overly broad limitations on treating former patients may be treated as noncompetition covenants and rendered void.

Notice Deadline

By October 1, 2027, employers must notify current and former employees and contractors that covered noncompetition agreements are void and unenforceable.

Penalties

$5,000 statutory damages per violation, plus attorneys’ fees. The Washington Attorney General may also bring enforcement actions.

What Is Still Permitted

Nonsolicitation of employees and patients (generally limited to 18 months). Noncompetes tied to the sale of a dental practice with at least 1% ownership interest. Confidentiality and HIPAA-compliant protections for patient information.

 

What This Means for Dental Practice Owners and DSOs

Dental practices and DSOs have historically relied on noncompetition agreements to protect patient goodwill, referral relationships, and workforce stability. These tools will now be significantly limited.

Practice owners and DSOs should expect reduced ability to restrict where associate dentists practice after departure, and will need to place greater reliance on carefully drafted nonsolicitation and confidentiality provisions. Retention strategies that go beyond restrictive covenants will become increasingly important.

The broader definition of “noncompetition covenant” is particularly worth noting. Provisions that restrict accepting business from patients — which some agreements use in lieu of traditional noncompetes — may now be captured under the new law and treated as void.

 

What This Means for Associate Dentists

Associate dentists — particularly those employed by DSOs — should be aware that many existing noncompetition provisions may become unenforceable under the new law beginning June 30, 2027. Associates should review whether current agreements contain provisions that may be void under the new law, how patient-related restrictions are structured and whether they are overly broad, and evaluate opportunities to revisit restrictive covenants in connection with employment changes or renegotiations.

 

What Is Still Permitted

Not all restrictive covenants are eliminated. The following protections remain available:

•       Nonsolicitation agreements are still permitted, but are generally limited to 18 months.

•       Noncompetition covenants tied to the sale of a dental practice remain enforceable, provided the restricted party holds at least a 1% ownership interest in the practice being sold.

•       Confidentiality provisions and HIPAA-compliant protections for patient information remain valid.

 

Recommended Next Steps

 

For Practice Owners & DSOs

•       Review and revise all associate and employment agreements now — before the June 30, 2027 effective date.

•       Update template agreements used for future hires to comply with the new law.

•       Plan for the required statutory notice obligation due by October 1, 2027.

•       Invest in nonsolicitation and confidentiality provisions as your primary protective tools going forward.

•       Consider retention strategies that reduce reliance on restrictive covenants.

For Associate Dentists

•       Review your current employment agreement, particularly if you are affiliated with a DSO or multi-location group.

•       Identify any noncompetition provisions and assess whether they may be void under HB 1155.

•       Evaluate whether patient-related restrictions are overly broad and may be captured under the new definition.

•       Seek legal advice before signing new or amended employment agreements.

•       Consult an attorney when negotiating changes to existing agreements.

 

 

Required Action for Employers: By October 1, 2027, employers must make reasonable efforts to notify both current and former employees and independent contractors that any covered noncompetition covenant in their agreements is void and unenforceable under Washington law.

 

Failure to provide this notice may contribute to violations that trigger $5,000 in statutory damages per violation, plus attorneys’ fees.

 

About the Author

About the Author

This article was prepared by Tyler Jones of Helsell Fetterman LLP, a Seattle-based law firm. Tyler advises dental practices, DSOs, and associate dentists on employment agreements, noncompete provisions, practice acquisitions, and health care law. Dental Accounting Group is sharing this content as a resource for our dental practice clients.

Read the original article at Helsell Fetterman’s blog: https://www.helsell.com/2026/03/26/washington-significantly-restricts-noncompetition-agreements/

Contact Tyler Jones directly:  tj****@*****ll.com  |  206.689.2164

 

Questions? DAG Can Help You Navigate the Financial Side

While employment law questions should be directed to a qualified attorney like Tyler Jones at Helsell Fetterman, Dental Accounting Group can help you evaluate the financial and operational implications of these changes on your practice. Whether you are reviewing your associate compensation model, structuring a practice sale, or planning for workforce transitions, we are here to help.

Contact us at ma**@*****ds.com or 425.216.1612, or reach out to Tyler Jones at Helsell Fetterman for legal guidance specific to your agreements.

 

Disclaimer: This article is shared by Dental Accounting Group (DAG) for general informational purposes only. The legal content was authored by Tyler Jones of Helsell Fetterman LLP and is reprinted with attribution under a cooperative resource-sharing arrangement. This article does not constitute legal, tax, accounting, or investment advice, and does not create an attorney-client relationship between the reader and either DAG or Helsell Fetterman LLP. Laws and regulations are subject to change. Dental practice owners, DSOs, and associate dentists should consult a qualified legal professional regarding their specific agreements and circumstances before taking any action.

 

Original article: https://www.helsell.com/2026/03/26/washington-significantly-restricts-noncompetition-agreements/

 

© 2026 DG Accounting Professionals LLC. All Rights Reserved.
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⚠️  SCAM ALERT: If you
received a letter titled “2026 Annual Registration — Final Reminder” or similar, do not pay until you have verified it with the Washington Secretary of State directly.

 

The actual cost of a Washington State annual report is $70 for most for-profit businesses. Third-party mailers routinely charge $100–$200 or more for filings that may not be necessary at all.

 

Scam Alert: Washington Annual Registration Mailers Are Back in 2026

If your dental practice, PLLC, or other Washington LLC recently received a letter titled “2026 Annual Registration — Final Reminder” or “2026 Annual Registration Instruction Form,” pause before you pay. A new wave of these misleading mailers has been circulating in Washington State in 2026, and they are designed to look far more official than they are.

We are flagging this for our clients because the dental industry — where practices are commonly structured as PLLCs or S-Corps — is a frequent target. These letters are not from the Washington Secretary of State. They are from private, third-party companies that charge excessive fees for services that are either unnecessary or available directly from the state at a fraction of the cost.

 

What the Mailer Looks Like

The notice below is an example of one currently circulating in 2026. Notice that it includes legal-sounding language, RCW statute references, urgent “respond by” dates, and even an ALERT box warning recipients about other imposter letters — while itself being a third-party solicitation from a company called “Fast Filing Services.”

 

Example of a third-party mailer
circulating in 2026. Client address has been redacted. This letter is not from
the Washington Secretary of State.

Note the fine print at the top right: “Beware of imposter letters that have been circulating around Washington. We are not associated with Next Step Filings.” This is a telling detail. The letter is essentially a third-party service trying to differentiate itself from other scammers — while engaging in the same practice of charging excessive fees for state filings you can do yourself for $70.

 

This Is Not New — Washington Businesses Have Been Targeted for Years

The Washington Attorney General’s Office has issued repeated warnings about fraudulent Secretary of State notices targeting small businesses across the state. According to the Attorney General, these scam letters are designed to mimic official government communications and demand payment well beyond the cost of legitimate state business filings.

These letters are addressed directly to businesses, often include the company’s Unified Business Identifier (UBI) number, and may include the Washington state seal — all of which make them appear official. However, business names and UBIs are publicly available records, not confidential information. Anyone can look them up and use them to make a solicitation appear legitimate.

Multiple consumer protection lawsuits have been filed and won by the Attorney General’s Office against companies engaging in this conduct, with courts imposing civil penalties and ordering restitution. The schemes keep resurfacing under new company names.

 

How to Tell the Difference: Scam vs. Legitimate SOS Notice

Use this table to evaluate any annual registration notice you receive:

 

Check This

Scam / Third
Party

Legitimate WA
Secretary of State

Sender/Return Address

Private company (e.g., Fast Filing Services, Next Step Filings,
E-File Business). PO box or out-of-state address.

sos.wa.gov or official SOS letterhead. Mailed from Olympia, WA.

Fees Requested

Often $100–$200+ for a filing that may not be needed at all.

Annual report fee is $70 for for-profit businesses. No other fees
required for a standard filing.

Urgency vs. Actual Due Date

Creates a “respond by” date that is weeks or months earlier than
the actual state filing deadline.

Sends notice ~60 days before your expiration month. Your actual
due date is the end of your anniversary month.

QR Codes / Website URLs

QR codes link to .org, .com, or other non-government sites.

All official links end in .gov (sos.wa.gov). The SOS does not
currently send text messages.

Legal-Sounding Language

Quotes RCW statutes and threatens administrative dissolution to
create urgency. May reference other scam companies.

Communicates plainly. Does not reference competitors or unrelated
companies. Does not threaten jail.

How to Verify

Google the company name. Check the WA Secretary of State CCFS
system directly at sos.wa.gov to see your actual filing status.

Call (360) 725-0377 or email co***@****wa.gov to confirm the
communication is genuine.

 

Red Flags in the Specific 2026 Mailer

The letter shown above has several specific characteristics that identify it as a third-party solicitation rather than an official government notice:

 

•      Two different dates: The letter shows a “Please Respond By” date of 3/27/2026 but a “Due Date” of 6/30/2026. The real filing deadline is 6/30 — the earlier date is designed to create artificial urgency and pressure you to pay quickly.

•      Sent by “Fast Filing Services,” not the Secretary of State: The bottom of the letter references this private company. The Washington Secretary of State does not contract private third parties to collect annual report fees.

•      Warning about other scammers: The ALERT box disclaiming association with “Next Step Filings” is itself a red flag. The real Secretary of State has no reason to disclaim being associated with other private companies.

•      RCW citations used as legitimacy props: Quoting Washington state statutes sounds official, but any private company can quote state law. The citation does not mean the mailer is from a state agency.

•      No official Secretary of State branding: Legitimate correspondence from the Secretary of State’s office clearly identifies the agency, uses .gov email addresses, and links to sos.wa.gov. Third-party letters often omit or obscure this.

 

What the Real Filing Actually Costs

The Washington Secretary of State annual report fee is $70 for most for-profit businesses (including PLLCs and S-Corps). There are no additional required fees for a standard annual report filing.

 

You can file directly at: sos.wa.gov → Corporations and Charities Filing System (CCFS)

 

The Secretary of State sends its own reminder notices — by email approximately 60 days before expiration and by mail 45–60 days before expiration if you have not selected electronic notification. These notices come from the SOS directly, not from third-party services.

 

What to Do If You Received One of These Letters

1.    Do not pay. Set the letter aside and verify your actual filing status first.

2.    Go to sos.wa.gov and log in to the Corporations and Charities Filing System (CCFS) to check the status of your annual report. You can see whether your filing is current, when it is due, and what you owe — at no cost.

3.    If you are unsure whether a notice is legitimate, contact the Secretary of State’s office directly: call (360) 725-0377 or email co***@****wa.gov.

4.    If you determine the letter is fraudulent, report it to the Washington Attorney General’s Office at atg.wa.gov. The more complaints received, the better the AG’s ability to take action against these companies.

5.    Forward the letter to your DAG advisor.

 

What to Do If You Already Paid

 

If you have already sent payment to a third-party company for a Washington annual registration filing, consider taking these steps:

 

•  Contact your bank or credit card company immediately to stop or dispute the payment.

•  File a complaint with the WA Attorney General at atg.wa.gov.

•  Check sos.wa.gov to verify the status of your actual annual report. If the third party filed it on your behalf, your information (and payment) may now be in someone else’s name.

•  Contact the SOS at (360) 725-0377 if you find an unauthorized filing under your business name.

 

Official Resources

•      Washington Secretary of State CCFS: sos.wa.gov —
verify your filing status and file your annual report directly

•      SOS Phone: (360) 725-0377

•      SOS Email: co***@****wa.gov

•      Misleading Notices FAQ (SOS): sos.wa.gov →
search “Misleading Notices & Solicitations”

•      Report a Scam (WA AG): atg.wa.gov → File a
Consumer Protection Complaint

 

Disclaimer: This article is prepared by Dental Accounting Group (DAG) for general informational purposes only and does not constitute legal, tax, accounting, or investment advice. Information is based on sources believed to be reliable as of the publication date. Individuals and businesses should verify their specific circumstances directly with the Washington Secretary of State. To report a scam, contact the WA Attorney General’s Office at atg.wa.gov.

 

© 2026 DG Accounting Professionals LLC. All Rights Reserved.

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RS Tax Payments & USPS Updates

How to Pay Estimated Taxes Online

Effective immediately, the IRS is no longer accepting paper checks for estimated income tax payments. All estimated tax payments must be submitted electronically. This applies to small business owners, sole proprietors, and any business owner responsible for making quarterly payments on their tax liability.

Here is what you need to know:

Using IRS Direct Pay

IRS Direct Pay is the fastest, most secure way to make federal tax deposits or estimated payments directly from your bank account at no cost. It connects directly to your tax account and allows you to apply payments toward your tax balance due for the current year. Access it at

https://www.irs.gov/payments/direct-pay-with-bank-account

Follow these steps:

  • Step 1 Go to pay.irs.gov and select ‘Make a Payment.’
  • Step 2 Choose your reason for payment (e.g., Estimated Tax), which applies to income tax return obligations and quarterly payments based on your taxable income.
  • Step 3 Verify your identity using information from a prior year federal tax return.
  • Step 4 Enter your bank account routing and account number (or use a debit card option where available), along with your payment amount.
  • Step 5 Review all details and submit. You will receive a confirmation number immediately upon completion.

These payments help reduce your tax liability and avoid an estimated tax penalty or underpayment issues later in the year.

IMPORTANT: IRS Direct Pay payments must be scheduled at least one business day in advance of the due date. Do not wait until midnight on the deadline day.

Other Electronic Payment Options

In addition to IRS Direct Pay, estimated tax payments can also be made through EFTPS (Electronic Federal Tax Payment System) at eftps.gov, which is popular for S-corp and business tax deposits. You may also pay via debit card or credit card through an IRS-approved payment processor, though service fees apply. These options are commonly used by small business owners, including sole proprietors filing a Schedule C, to stay current on federal tax deposits and avoid accumulating a tax balance.

USPS & Certified Mail Requirements

If you must mail anything to the IRS — such as a tax return, amended return, or written correspondence — always use USPS Certified Mail with Return Receipt Requested. This provides legal proof of timely filing. Keep your tracking number and postal receipt as part of your permanent records. Standard first-class mail does not provide this protection. FedEx and UPS may also be used, but only to IRS-designated addresses. This is especially important when submitting documentation related to your income tax return, amended filings, or resolving a tax balance due.

Depending on your situation, estimated payments may also be influenced by gross income, dividends, capital gains, available deductions, and existing withholding from a paycheck or other income sources.

If you want clarity around your estimated payments and overall tax strategy, connect with our team for guidance tailored specifically to dental practice owners.