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Same-Day Answers From Your Dental Accountant Drive Profit

January is a natural reset for every dental practice. You review last year’s performance, set new financial goals, and decide which partners can help you reach them. At Dental Accounting Group, communication speed is treated as a core part of client support. When your dental accountant replies the same day with clear, actionable guidance, you make decisions faster, avoid costly surprises, and protect your bottom line. Timely financial clarity supports financial stability, confident leadership, and better patient care.

Why timely financial communication changes cash flow decisions

Cash flow rises and falls every week in dentistry. Insurance deposits arrive on a delay, dental supplies require upfront purchases, and payroll hits like clockwork. When your accounting team sends current financial statements, reconciled bank statements, and clean bookkeeping on time, you see what is true today, not last quarter. That real-time picture helps you schedule large purchases, plan owner draws, and decide when to accelerate or pause expenses.

Timely answers also reduce risk in daily financial transactions. A quick response that confirms a payment posting, clarifies a reimbursement, or flags a duplicate charge prevents small errors from compounding. These are practical wins that come from dental practice accounting handled with responsiveness. The outcome is fewer end-of-month surprises and smoother operations across your dental practice management systems.

How delayed answers impact payroll, tax planning, and dental supplies

Delays carry real costs in a dental practice. Common scenarios include:

  • Payroll coordination and support: Waiting on answers about payroll adjustments, benefits, or overtime calculations raises stress and can lead to errors. Missed cutoff times create rush fees and corrections that waste time and money. Reliable same-day guidance keeps payroll accurate and predictable.
  • Tax planning and deductions: If questions about equipment purchases, timing of deductions, or estimated payments linger, you lose control of tax outcomes. Clear recommendations, delivered quickly, allow the practice owner to time expenses and avoid penalties.
  • Vendor payments and dental supplies: Slow replies to questions about vendor credits, bulk discounts, or financing terms can cause missed savings opportunities. Fast confirmations support better purchasing decisions and protect cash flow.

Each delay creates friction that ripples through dentistry’s tight operational schedule. Rapid follow-up reduces that friction and keeps the practice moving toward financial success.

Acknowledgment vs resolution: know the difference

Some accountants acknowledge messages quickly but wait days to resolve the issue. Acknowledgment matters because it confirms receipt and sets expectations. Resolution is what impacts decisions, protects cash flow, and completes accounting services. Dental practice owners should expect both.

A strong communications process includes a short acknowledgment followed by a clear path to resolution. That path outlines the data required, the person responsible, and the timeline. The result is predictable follow-through that turns questions into completed answers without repeated chasing.

How fast should an accountant respond?

For operational questions that affect payroll, vendor payments, or daily deposits, same-day response is reasonable and effective. Strategic questions that require analysis should receive a 24-hour acknowledgment and a defined date for resolution. Fast, clear timelines help dentists plan their week with confidence.

Does accountant communication affect profitability?

Yes. Speed and clarity reduce rework, prevent fees and penalties, and support better timing for purchases and deductions. When you get accurate answers before a decision point, you commit funds wisely and avoid unplanned cash calls. Over a year, those avoided costs and smarter choices show up directly in the bottom line.

What does good CPA communication look like for a dental practice?

Dental accounting benefits from consistent, dental-specific communication. Hallmarks of effective outreach from a certified public accountant include:

  • Specific next steps and deadlines, not vague replies.
  • Context related to dentistry, such as fee schedules, insurance timing, and common reimbursement delays.
  • Proactive alerts about payroll cutoffs, estimated tax dates, and cash flow tight spots.
  • Simple financial statements and KPIs with plain-language notes that explain variances.
  • Documentation requests that match your dental practice management workflows, including how to export reports cleanly and securely.

These habits build trust and keep the practice owner focused on patient care while the numbers stay organized.

How responsiveness supports better decisions in dental accounting

Dentists make many financial decisions during a month. Whether you consider adding an associate, adjusting hygiene hours, or investing in new equipment, you need fast, dental accounting input. Same-day guidance translates production trends, collections timing, and overhead shifts into clear recommendations. That speed enables the successful dental practice to act when opportunity is present.

Quick access to your accountant also improves planning for seasonality. Many practices see production dips around holidays or school schedules. A rapid check-in tied to current reports helps you align staffing, marketing, and inventory, which supports financial stability without sacrificing patient care.

The difference DAG’s Same-Day or 24-Hour Communication Commitment makes

Dental Accounting Group focuses exclusively on the dental industry. That specialization allows us to understand scheduling rhythms, insurance cycles, and how financial transactions flow through a dental practice. Our Same-Day or 24-Hour Communication Commitment means you do not wait for critical updates. We aim to answer fast and resolve with clarity.

Responsiveness is paired with Strategic Advisory for Practice Owners. When you reach out, we respond with dental-specific context, not generic accounting answers. We connect what we see in your KPIs and financial statements to the choices in front of you. When payroll questions come up, our Payroll Coordination and Support ensures you hit deadlines and keep your team paid accurately.

What to expect when you work with Dental Accounting Group

Working with DAG feels predictable and supportive. We keep the cadence steady so decisions are grounded in current data.

  • Clean monthly close: We reconcile bank statements promptly and deliver organized reports with notes that explain trends and variances.
  • Cash flow visibility: We highlight timing of insurance deposits, loan payments, and large vendor invoices so you see what is coming.
  • Tax planning built into the year: We review deductions, equipment timing, and quarterly estimates before deadlines so there are no surprises.
  • Fast operational help: We answer same day or within 24 hours on time-sensitive topics like payroll, vendor payments, and daily deposit variances.
  • Education and training: We teach your team how to prepare accurate exports, track adjustments, and reduce rework, which accelerates resolution.

This approach supports dentistry’s pace and keeps your resources aligned with your financial goals.

Simple steps to improve communication with your dental accountant today

A few small changes create faster, clearer collaboration with your accounting team.

  1. Send questions with context. Include the date range, vendor, patient initials if relevant, and the desired decision deadline. Better inputs create faster outputs.
  2. Attach supporting documents. Add screenshots, bank activity, or relevant reports from your dental practice management software. Clear documentation reduces back-and-forth.
  3. Ask for a timeline. A straightforward request for acknowledgment and expected resolution date keeps both parties aligned.
  4. Use one channel for time-sensitive items. Email or your client portal works best for audit trails and attachments. Reserve texts for urgent alerts, then follow with an email summary.
  5. Schedule brief checkpoints. A 15-minute monthly call prevents small questions from growing. Many dentists find this rhythm keeps dentistry on schedule and cash flow on track.

Choosing a partner who understands dentistry and responds fast

Specialized dental accounting delivers better insights because it aligns with how dental runs. When you combine that specialty with reliable communication speed, decisions become easier. You get clear answers about payroll, collections timing, equipment purchases, and deductions when you need them. That cadence supports financial success and a confident, successful dental practice.

If you want an advisory relationship that prioritizes responsiveness, clarity, and dental expertise, Dental Accounting Group is ready to help. 

Are You Ready for an Accountant Who Responds When It Matters

Connect with us to experience relationship-based accounting support with same-day or 24-hour replies, practical guidance, and reporting built for dentists. Your practice deserves a partner who answers with accuracy and speed.

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Why Dentists Replace Their Dental Accountant in the New Year

The New Year is a natural checkpoint for every dental practice. Many practice owners use this moment to ask whether their current accounting services are supporting real financial goals or simply filing a tax return. At Dental Accounting Group, these conversations often begin when dentists want a deeper level of insight and responsiveness. Dentists frequently seek a partner who understands dentistry, communicates proactively, and delivers clear financial statements that lead to better decisions for patient care and practice growth.

Why do dentists change accountants?

Dentists change accountants when communication is slow, reports are unclear, and advice is limited to tax season. Practices need timely answers, accurate bookkeeping, and guidance that reflects the realities of the dental industry. When that does not happen, practice owners start the year with a new plan and a new advisor.

Common triggers for switching in a dental practice

Most dentists cite delays and lack of responsiveness as the primary issue. Questions about payroll timing, vendor payments for dental supplies, or tax estimates cannot sit for days. A same-day or 24-hour communication commitment matters because small timing issues compound into larger cash flow problems and missed deductions.

Another common driver is feeling treated like a tax return instead of a business owner. Dental practice accounting is not one-size-fits-all. A practice owner needs a certified public accountant who understands financial transactions specific to production, collections, merchant fees, and insurance adjustments. That knowledge shows up in accurate bank statements, clean reconciliations, and reports that make sense.

Many practices also move on when their accountant cannot explain results. If a report lists numbers without context, there is no bridge between data and decisions. Custom dental accounting reports should clarify the bottom line, highlight risks to financial stability, and show a path to financial success, not leave you guessing.

Communication delays cost real money in a dental practice

Late responses create operational friction. When payroll questions linger, staff confidence slips. If vendor payments are delayed, relationships with suppliers suffer. When tax planning conversations occur after the year closes, deductions go unrealized. Timely replies protect cash flow, strengthen dental practice management, and relieve stress for dentists who want to stay focused on patient care instead of chasing answers.

At Dental Accounting Group, responsiveness is an operating standard. We provide relationship-based accounting support with clear follow-up and practical next steps. That includes direct answers to time-sensitive items and a steady cadence for month-end close, tax planning touchpoints, and KPI reviews. Communication that arrives when you need it supports a successful dental practice day to day.

What should a dental accountant communicate regularly?

A dental accountant should provide monthly financial statements, a straightforward cash flow view, progress toward financial goals, and clear next steps for taxes and payroll. They should flag variances, explain significant financial transactions, and confirm that bank statements are reconciled. They should also document deadlines so nothing is missed.

Beyond timing, content matters. Reports should reflect dental practice accounting details, not generic categories. Production and collections should be easy to track. Overhead should be organized so you can see dental supplies, lab fees, and staffing costs clearly. When data mirrors the way a practice operates, decisions become simpler and more confident.

How often should a dentist hear from their CPA?

Dentists should hear from their CPA at least monthly, with additional touchpoints each quarter for tax planning and anytime a question arises. Your cpa should set expectations for response times and deliverables so you know when to expect answers, documents, and next-step recommendations throughout the year.

That regular cadence reduces surprises. It creates room for planning instead of scrambling. It also ensures your accountant understands your calendar, from hygiene schedules to insurance deposit timing, so advice aligns with the realities of dentistry and your local market.

Tailored reporting leads to better decisions for practice owners

Generic accounting often hides what matters most to dentists. Custom financial reporting built for the dental industry highlights the drivers of your bottom line and provides an accessible view of cash flow. When bookkeeping organizes revenue and expenses the way a practice operates, owners can spot trends and act quickly.

For example, consistent categorization of financial transactions helps you evaluate profitability and plan for the right inventory of dental supplies. Accurate payroll mapping supports staffing decisions and seasonal scheduling. Clear month-end reports free you to focus on dentistry while staying confident that the numbers behind patient care are current and reliable.

From transactional accountant to relationship-based partner

Many dentists are moving from compliance-only firms to partners who provide ongoing strategic guidance. Relationship-based accounting support means you have a team that understands context, not just line items. It also means an advisor who anticipates questions, educates your team, and sits beside you when big decisions arise, such as expansion, equipment purchases, or adjusting compensation models.

Dental Accounting Group serves dentists exclusively. That focus shows up in our dental-specific bookkeeping, custom reporting, practice analytics and KPI tracking, and education and training for practice owners. Strategic advisory for practice owners turns data into action, and our same-day or 24-hour communication commitment keeps decisions moving. The result is financial stability and momentum that matches your vision for growth.

What to evaluate when replacing your accounting services

Use this short checklist to assess fit as you consider a new advisor for the New Year:

  • Dental industry expertise and exclusive focus on dentistry.
  • A certified public accountant who provides accessible explanations and education.
  • Clear monthly financial statements and reconciled bank statements.
  • Accurate, dental-specific bookkeeping and documentation of deductions.
  • Proactive tax planning that aligns with cash flow and your financial goals.
  • Payroll coordination and support with reliable timelines.
  • Practice analytics and KPI tracking with custom financial reporting.
  • A relationship-based model with a stated response commitment and clear next steps.

A strong partner will help you lead with clarity. The right accountant equips you to make decisions confidently, protect the bottom line, and drive financial success on a predictable schedule.

Getting started with a plan that supports dentistry all year

If the past year felt reactive, use this moment to reset. Begin with a conversation about your goals, your current process, and the reports you rely on. Ask for a demonstration of monthly close, tax planning workflow, and how cash flow is monitored. Request examples of how recommendations are delivered and tracked so you can hold the team accountable.

Take the First Step Toward Better Dental Accounting Support

Choose a dental accountant who understands dentistry, values timely communication, and delivers clarity you can act on. 

Schedule a conversation today with Dental Accounting Group to start the New Year with organized books, clear reports, and a partner invested in your dental practice.

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Understanding your sales and use tax obligations in Washington State is essential for maintaining compliance and avoiding costly penalties. Whether you operate a dental practice, professional services firm, or retail business, staying current with these requirements can save you significant time and money.

This guide breaks down everything you need to know about Washington’s sales and use tax system, including recent legislative changes that took effect in late 2025.

Understanding Sales and Use Tax in Washington

What Is Sales Tax?

Sales tax is imposed on retail sales of most goods and certain services in Washington State. When your business sells taxable items or services to customers, you must collect the applicable sales tax at the point of sale and remit it to the Washington Department of Revenue (DOR).

The combined state and local sales tax rates vary by location, ranging from 6.5% (the state base rate) to over 10.5% in some areas, such as parts of King County. It’s important to apply the correct rate based on where the sale occurs.

What Is Use Tax?

Use tax serves as the counterpart to sales tax. It applies when your business purchases taxable goods or services from out-of-state vendors (or in-state vendors who fail to charge sales tax) and uses those items in Washington.

The use tax rate equals the sales tax rate that would have applied if the purchase had been made locally. Business owners are responsible for self-reporting and remitting use tax on their Combined Excise Tax Return.

Who Is Subject to Sales and Use Tax?

Washington businesses are generally subject to sales and use tax obligations if they meet any of the following criteria:

•       Have a physical presence in Washington (office, employees, inventory, or business location)

•       Meet the economic nexus threshold of $100,000 or more in gross receipts sourced to Washington in the current or prior year

•       Sell taxable goods or services to Washington customers

•       Purchase items or services for use in Washington without paying sales tax

Special Considerations for Dental Practices and Service Businesses

While professional dental services are generally not subject to sales tax, practices must still collect sales tax on certain retail items sold to patients, such as oral care products sold over the counter. Additionally, dental practices must pay use tax on business purchases where applicable, including acquired assets when buying a practice.

Service businesses like dental practices are also subject to a state (and sometimes city) Business and Occupation (B&O) tax on gross receipts. This typically ranges from 1.5% to 2%, depending on the location of the business and whether there is an applicable city tax rate.

Recent Changes: ESSB 5814 and New Sales Tax Categories

Effective October 1, 2025, Washington’s ESSB 5814 extended retail sales tax to several new categories that may significantly impact your business operations.

Advertising Services Now Subject to Sales Tax

The new law broadly defines taxable advertising services as “all digital and nondigital services related to the creation, preparation, production, or dissemination of advertisements.” This encompasses a wide range of activities, including:

•       Website development and design

•       Logo design and branding

•       Search engine optimization (SEO) services

•       Acquisition of advertising space

•       Consulting and advice on advertising methods

Live Presentations and Speaking Engagements

Seminars, workshops, and continuing education events where participants attend in-person or via real-time telecommunication are now subject to sales tax. This has important implications for professionals who receive compensation for speaking engagements—they must now collect and remit sales tax to the Department of Revenue.

What Remains Exempt

Several advertising-related categories remain exempt from sales tax:

•       Radio and television advertisements

•       Newspapers

•       Fixed signage such as billboards

•       In-store displays

Outside of these specific exceptions, the State generally assumes that anything related to advertising is subject to sales tax.

What to Look For: Ensuring Compliance

While vendors are responsible for collecting sales tax, many may not yet be aware of the new rules—particularly if you work with out-of-state vendors. Here’s what you should do:

1.    Review your advertising invoices to verify whether sales tax is being charged.

2.    Contact vendors who aren’t charging sales tax to understand their reasoning. They may have a valid exemption (such as minimal presence in Washington) or may have inadvertently omitted the tax.

3.    Self-report use tax on your Combined Excise Tax Return if vendors legitimately cannot charge sales tax.

The Combined Excise Tax Return

Washington does not have a state income tax. Instead, businesses file a Combined Excise Tax Return that includes:

•       Business & Occupation (B&O) Tax – A gross receipts tax on business activities

•       Retail Sales Tax – Tax collected from customers on taxable sales

•       Use Tax – Self-reported tax on out-of-state or untaxed purchases

•       Other applicable state and local taxes

All registered Washington businesses must file this return, even if they had no business activity during the reporting period. This is known as a “no business activity” return.

Filing Frequencies and Due Dates

The Department of Revenue assigns filing frequencies based on your estimated annual tax liability:

Filing Frequency

Business Size

Due Date

Monthly

Higher volume businesses

25th of following month

Quarterly

Mid-range businesses

Last day of month after quarter

Annual

Smaller businesses

April 15 / January 31

Note: Due dates falling on weekends or holidays extend to the next business day.

Late Filing and Payment Penalties

Timely filing is crucial to avoid escalating penalties. Here’s what you can expect if you miss your deadlines:

Timing

Penalty

After due date

9%

After last day of following month

19%

After 2nd month following due date

29%

Interest (2025 rate)

7% annually

Additionally, interest accrues at approximately 7% annually (2025 rate) on unpaid tax balances.

Next Steps for Your Business

Staying compliant with Washington’s sales and use tax requirements requires ongoing attention, especially with the recent legislative changes. We recommend reviewing your current practices, auditing your vendor invoices for proper tax collection, and ensuring your bookkeeping processes capture any use tax obligations.

If you work with a bookkeeping team, make sure to notify them of any invoices requiring use tax treatment so they can properly record the expense and include the tax on your next excise tax return.

Disclaimer

This article is for informational and educational purposes only and should not be construed as specific accounting, legal, or tax advice. Tax laws and interpretations may change, and specific situations may warrant different approaches. The information provided herein does not create a client relationship and is not a substitute for professional consultation. Please consult with a qualified accounting professional to discuss how these requirements apply to your specific circumstances.

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Questions?  Please email us at ma**@*****ds.com or call us at 425.216.1612

3015 112th Ave NE, Suite 210

Bellevue, WA  9804

 

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How to Complete Your 401(k) Annual Census: A Step-by-Step Checklist

If your company sponsors a 401(k) plan, submitting accurate annual census data to your Third-Party Administrator (TPA) is one of the most important tasks in your retirement plan administration process. This data drives everything from employer match calculations to required 401k compliance testing—and delays can lead to costly errors.

In this guide, we’ll walk you through exactly what information your TPA needs and how to ensure your TPA census submission is complete and on time.

What Is a 401(k) Annual Census?

A 401(k) annual census is a comprehensive report of employee data that your TPA uses to:

  • Perform required compliance testing (ADP, ACP, top-heavy tests)
  • Calculate employer matching contributions accurately
  • Determine participant vesting percentages
  • Identify highly compensated employees (HCEs) and key employees
  • Prepare your plan’s annual Form 5500 filing

The census includes data for all employees—not just those participating in the plan—because eligibility and testing requirements apply company-wide.

What to Include in Your 401k Census Checklist

While specific requirements may vary based on your plan document, most TPA census submissions require the following categories of information.

  1. Employee Identifying Information

For every employee on your payroll during the plan year, provide:

  • Full legal name
  • Social Security number or employee ID
  • Date of birth
  • Original date of hire (even if the employee was rehired)
  • Termination date and/or rehire date, if applicable
  • Current employment status (active, terminated, retired, deceased, on leave)
  1. Compensation Data

Compensation figures are critical for employer match calculations and compliance testing. Be sure to use the compensation definition specified in your plan document, which may differ from W-2 wages.

  • Gross compensation for the plan year
  • Bonuses, overtime, and commissions (if tracked separately per plan terms)
  1. Hours and Service Information

Hours worked are essential for determining eligibility and vesting. Even salaried employees may need hours tracked depending on your plan’s requirements.

  • Total hours worked during the plan year
  • Hours for part-time and salaried/exempt employees
  1. Ownership and Related Party Information

This information is used to identify highly compensated employees (HCEs) and key employees for 401k compliance testing.

  • Ownership percentage for each owner
  • Family relationships to owners (spouse, child, parent, grandparent)
  • Controlled group or affiliated service group details, if applicable
  1. Deferral and Contribution Data

Include payroll-related contribution information:

  • Pre-tax deferral amounts by employee
  • Roth deferral amounts by employee
  • Catch-up contributions for employees age 50 and older
  • Loan repayments processed through payroll (if applicable)

Common 401(k) Census Mistakes to Avoid

Even experienced plan sponsors can make errors in their retirement plan census submissions. Watch out for these common pitfalls:

  • Omitting terminated employees — They must still be reported for the plan year.
  • Using the wrong compensation definition — Always refer to your plan document.
  • Excluding hours for salaried employees — Many plans still require this data.
  • Outdated ownership percentages — Update after any business changes.
  • Late submissions — This delays compliance testing and contribution calculations.

5 Tips for a Smooth TPA Census Submission

  1. Request your TPA’s census template early — Each TPA may have specific formatting requirements.
  2. Coordinate with your payroll provider — Many payroll systems can export census data in the required format.
  3. Review data for accuracy before submitting — Double-check compensation figures and employee counts.
  4. Include all employees — Even those who didn’t participate or who terminated during the year.
  5. Submit as early as possible — This allows time for questions, corrections, and timely filings.

Why Timing Matters for Your 401k Plan Administration

Your TPA manages census data for many plans simultaneously during peak filing season. Submitting your 401(k) annual census promptly ensures your plan receives the attention it needs and helps avoid:

  • Delayed employer contribution calculations
  • Rushed compliance testing that may miss errors
  • Late Form 5500 filings and potential penalties
  • Additional stress during an already busy time

Next Steps

Completing your 401k census checklist doesn’t have to be overwhelming. Start by contacting your TPA to confirm their specific requirements, then work with your payroll provider to gather the necessary data.

If you have questions about preparing your retirement plan census or need assistance with your 401k plan administration, contact your TPA for guidance.

Disclaimer: This article is provided for general informational and educational purposes only and does not constitute legal, tax, or professional advice. Plan requirements vary based on individual plan documents and applicable regulations. Please consult with your TPA, legal counsel, or qualified retirement plan advisor for guidance specific to your situation. This content is intended to assist with understanding 401(k) census requirements but does not guarantee compliance with ERISA, IRS, or DOL requirements.

401(k) Annual Census Submission Checklist: Click Here to access a copy of the below checklist resource in PDF format.

Use this checklist to ensure you submit complete and accurate census data to your Third-Party Administrator (TPA). Timely submission helps ensure accurate contribution calculations, proper compliance testing, and on-time Form 5500 filing.

Section 1: Employee Identifying Information

Provide the following for ALL employees—not just plan participants:

 

Employee Identifying Information

☐

Full legal name

☐

Social Security number (or employee ID)

☐

Date of birth

☐

Date of hire (original hire date, even if rehired)

☐

Date of termination, if applicable

☐

Date of rehire, if applicable

☐

Employment status (active, terminated, deceased, retired, on leave)

Section 2: Compensation Data

Compensation must match the definition in your plan document, which may differ from W-2 wages:

 

Compensation Data

☐

Gross compensation for the plan year (per plan document definition)

☐

Bonus amounts (if tracked separately per plan terms)

☐

Overtime pay (if tracked separately per plan terms)

☐

Commissions (if tracked separately per plan terms)

Section 3: Hours and Service Information

Hours are required for eligibility and vesting calculations, even for salaried employees:

 

Service Information

☐

Total hours worked during the plan year

☐

Hours tracked for salaried/exempt employees (if required by plan)

☐

Hours for part-time employees

Section 4: Ownership and Related Party Information

Required for highly compensated employee (HCE) and key employee testing:

 

Ownership Information

☐

Ownership percentage for each owner

☐

Family relationships to owners (spouse, child, parent, grandparent)

☐

Any changes in ownership during the plan year

☐

Controlled group or affiliated service group information (if applicable)

Section 5: Deferral and Contribution Data

Provide payroll-related contribution information:

 

Contribution Data

☐

Pre-tax deferral amounts by employee

☐

Roth deferral amounts by employee

☐

Catch-up contributions (for employees age 50+)

☐

Loan repayments processed through payroll (if applicable)

Section 6: Before You Submit

 

Final Review

☐

Verify ALL employees are included (including terminated employees)

☐

Confirm compensation definition matches plan document

☐

Review ownership percentages for accuracy

☐

Use TPA’s preferred format or template

☐

Submit data to TPA ASAP to ensure timely filings

Helpful Tips

• Contact your TPA early to request their specific census template.

• Coordinate with your payroll provider to export data in the required format.

• Don’t forget terminated employees — they must be reported for the plan year.

• Submit early to allow time for questions and corrections.

Questions? Contact your TPA for assistance.

Disclaimer: This checklist is provided for general informational and educational purposes only and does not constitute legal, tax, or professional advice. Plan requirements vary based on plan documents and applicable regulations. Please consult with your TPA, legal counsel, or qualified retirement plan advisor for guidance specific to your plan. This document is intended to assist with compliance but does not guarantee compliance with ERISA, IRS, or DOL requirements.

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Questions?  Please email us at ma**@*****ds.com or call us at 425.216.1612

3015 112th Ave NE, Suite 210

Bellevue, WA  9804

 

STUDY CLUBS

If you would be interested in having us speak at one of your upcoming Study Club events, we would be happy to do so. Online meetings are available.  Contact our office for more details: ma**@*****ds.com

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Understanding the IRS Math and Taxpayer Help Act

If you’ve ever received an IRS notice claiming there was a “math error” on your tax return—only to be left scratching your head about what actually went wrong—you’re not alone. For years, dental practice owners and other taxpayers have been frustrated by vague IRS notices that provide little explanation and even less guidance on how to respond.

That’s about to change.

What Is the IRS MATH Act?

On December 1, 2025, President Trump signed the Internal Revenue Service Math and Taxpayer Help Act (IRS MATH Act) into law. This bipartisan legislation passed unanimously in both the House and Senate, reflecting broad agreement that taxpayers deserve straightforward, transparent communication from the IRS.

The law, which takes effect on December 1, 2026, requires the IRS to provide specific, detailed explanations when it adjusts a tax return for a mathematical or clerical error. No more guessing games about what triggered the change or how much you owe.

What Changes Under the New Law?

When the IRS MATH Act goes into effect, math error notices must include:

Plain language explanations. The IRS must describe the error clearly, including the specific Internal Revenue Code section and the exact line on your tax return where the issue occurred.

Itemized calculations. You’ll receive a detailed breakdown showing exactly how the IRS computed the proposed adjustment and how it affects your return.

Prominent deadlines. The 60-day window to challenge the adjustment must appear in bold on the first page of the notice. This is critical because failing to respond within this timeframe typically means losing your right to contest the assessment in U.S. Tax Court.

Clear response procedures. The notice must explain how you can request an abatement—whether in writing, electronically, by phone, or in person.

Specific error identification. The IRS can no longer send you a list of possible errors. They must identify the exact issue on your return.

The law also establishes a pilot program to test whether sending these notices by certified mail improves delivery and response rates.

Why This Matters for Your Dental Practice

Math error notices are more common than many practice owners realize. According to IRS data, over one million of these notices were sent during the 2023 tax year alone. For busy dental professionals managing patient care, staff, and business operations, receiving a confusing IRS notice can be stressful and time-consuming.

Under the old system, many taxpayers simply accepted the IRS adjustment because they couldn’t figure out what had gone wrong or didn’t realize they had a limited window to respond. The IRS MATH Act levels the playing field by giving you the information you need to understand the situation and make an informed decision about whether to challenge it.

What Should You Do Now?

While this law won’t take effect until late 2026, here’s what you can do in the meantime:
If you receive a math error notice before the new rules take effect, review it carefully and contact your tax advisor promptly. Remember that you typically have only 60 days to dispute the assessment. Keep thorough records of all tax return documentation, which will make it easier to respond to any IRS inquiries. If you’re having difficulty resolving an IRS issue, the Taxpayer Advocate Service (TAS) is a resource that can help you navigate the process.

We’re Here to Help

At Dental Accounting Group, we monitor tax law changes that affect dental practices so you can focus on what you do best—caring for your patients. If you receive an IRS notice or have questions about how tax changes might affect your practice, our team is ready to assist.

Sources:

Disclaimer: This article is intended for general informational purposes only and does not constitute legal, tax, or professional advice. Every situation is unique, and tax laws are subject to change. You should consult with a qualified tax professional or CPA regarding your specific circumstances before making any decisions based on this information. This content is provided in accordance with AICPA professional standards and does not create a client relationship with Dental Accounting Group.

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Questions?  Please email us at ma**@*****ds.com or call us at 425.216.1612

3015 112th Ave NE, Suite 210

Bellevue, WA  9804

 

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ESSB 5814 Tax Guidance for Dental Study Clubs: What Dentists Need to Know Before October 1, 2025

Washington State’s Engrossed Substitute Senate Bill 5814 introduces significant changes to how professional services are taxed, particularly affecting dental study clubs and continuing education presentations. This article provides our interpretation of the new law and practical guidance for navigating these changes while protecting your interests.

Key Tax Changes Effective October 1, 2025

The new law extends retail sales tax to “live presentations,” defined in RCW 82.04.050(3)(l) as:

“Live presentations including, but not limited to, lectures, seminars, workshops, or courses where participants attend either in-person or via the internet or telecommunications equipment that allows audience members and the presenter or instructor to give, receive, and discuss information with each other in real time”

This creates three distinct scenarios for dental practices:

  1. Study Club Membership Dues: We advise these remain non-taxable (explained below)
  2. Speaking Fees Paid to Presenters: Must include sales tax
  3. Event-Specific Attendance Fees: Subject to sales tax

Our Position: Study Club Dues Are Not Subject to Sales Tax

The Dental Accounting Group takes the position that annual study club membership dues should not be subject to retail sales tax, based on careful analysis of ESSB 5814’s language and structure. Here’s our reasoning:

Legal Basis for the Dues Exemption

The statute specifically targets “live presentations” as discrete, identifiable services. Annual membership dues represent a fundamentally different transaction:

  1. Bundle of Rights Specific Service: Membership dues provide access to multiple benefits including networking opportunities, resource libraries, practice management support, and potential attendance at presentations. They do not constitute payment for any specific “live presentation.”
  2. Timing Distinction: The law contemplates real-time presentations with defined start and end times. Annual dues are paid without reference to specific events, often before any presentations are
  3. Allocation Complexity:
    • Many study clubs allocate dues across multiple purposes: Administrative costs (30-40%)
    •  Venue and hospitality (20-30%)
    •  Materials and resources (15-20%)  Speaker fees (15-30%)

Since only a portion relates to presentations, taxing the entire dues amount would exceed the statute’s scope.

Supporting Arguments

The statute taxes “charges for” live presentations, not general membership fees. Just as country club dues aren’t subject to sales tax despite members using taxable facilities, study club dues represent membership in an organization rather than payment for specific taxable services.

No Department of Revenue guidance contradicts this interpretation. Until specific regulations address membership organizations, reasonable interpretations favoring taxpayers should prevail.

Clear Taxable Transactions: Speaker Fees and Attendance Charges

While we defend the dues exemption, two scenarios clearly trigger sales tax obligations:

1.  Speaking Fees (Paid to Presenters)

Under RCW 82.04.050(3)(l), any dentist or professional receiving compensation for delivering a live presentation must charge sales tax. This includes:

  • Hourly or daily speaking fees  Flat-rate presentation charges
  • Travel stipends tied to speaking engagements
  • Any compensation for real-time educational delivery

Example: Dr. Smith receives $2,000 to present at your study club. She must invoice $2,000 plus applicable sales tax (6.5-10.5% depending on location).

2.  Event-Specific Attendance Fees

When charging non-members to attend specific presentations, sales tax applies:

  • Single-event registration fees
  • Guest attendance charges
  • Workshop-specific fees beyond regular dues

Example: Your study club charges $150 for non-members to attend a hands-on workshop. You must collect sales tax on this amount.

Compliance Strategies for Different Scenarios

For Study Club Operators

Current Approach (Until Further Guidance):

  • Continue collecting annual dues without sales tax
  • Maintain clear documentation showing dues cover multiple benefits
  • Segregate presentation costs in your accounting records

When Hiring Speakers:

  • Require all speakers to include sales tax on their invoices
  • If speakers fail to charge tax, self-report use tax on the untaxed amount
  • Document all speaker agreements specifying tax obligations

For Individual Events:

  • Any charges specifically for attending presentations must include sales tax
  • Create separate fee structures for “membership” versus “event attendance”

For Dentists Who Present

If You Receive Speaking Fees:

  • Register for Washington sales tax collection immediately
  • Add applicable sales tax to all speaking fee invoices
  • Specify on invoices: “Sales tax per RCW 82.04.050(3)(l)”

Calculation Methods:

  1. Add-On Method: Quote $2,000 + sales tax
  1. Inclusive Method: Quote $2,130 with tax included (must “back out” tax: $2,130 ÷ 1.105 = $1,927.60 taxable amount; $202.40 tax due)

Exemptions and Special Circumstances

What Remains Exempt

The following are NOT subject to the new retail sales tax:

  1. Telehealth Services: Patient consultations via video or phone (RCW 04.192(3)(b)(xi))
  2. Educational Institutions: Presentations by accredited colleges/universities to their students
  3. Internal Training: Employee education provided without charge
  4. Pre-Recorded Content: Asynchronous online courses without real-time interaction

Gray Areas Requiring Caution

  • Hybrid Events: Mixing business meetings with educational content
  • Sponsorship Payments: May avoid tax if not tied to specific presentations
  • Material Sales: Books and supplies remain subject to existing sales tax rules

Practical Implementation Timeline

Before October 1, 2025:

  1. Review Current Structure: Document how your study club operates and allocates funds
  2. Update Agreements: Revise speaker contracts to specify tax obligations
  3. Adjust Invoicing: Implement systems to collect tax on taxable transactions
  4. Communicate Changes: Inform members about new requirements

Ongoing Compliance:

  • Track Department of Revenue guidance for updates
  • Maintain clear records distinguishing dues from event fees  Report and remit collected taxes timely
  • Self-assess use tax on untaxed speaker fees

Risk Management Recommendations

Documentation Best Practices

Maintain records showing:

  • Membership benefits beyond presentations
  • Allocation of dues to various purposes
  • Clear separation between dues and event fees
  • Speaker agreements with tax provisions

Audit Defense Preparation

The Department of Revenue will likely scrutinize professional organizations. Prepare by:

  • Establishing written policies before October 1
  • Consistently applying your tax treatment
  • Documenting the business purpose of all transactions
  • Retaining professional tax guidance 

Conclusion and Action Steps

The Dental Accounting Group believes thoughtful structuring can minimize the tax impact of ESSB 5814 on dental study clubs. By distinguishing general membership dues from specific presentation charges, clubs can maintain their current dues structure while ensuring compliance on clearly taxable transactions.

Immediate Actions Required:

  1. Study Club Operators: Document your dues structure and update speaker agreements
  2. Presenters: Register for sales tax collection before accepting October engagements. No action is needed if you have historically accepted speaking fees through your dental practice entity, just make note to report speaking fees on your Sales Tax / B&O filing.

We will monitor Department of Revenue guidance and update our recommendations accordingly. This reasonable interpretation balances compliance with practical business operations while we await specific regulatory clarification.

Please contact our office to discuss your specific situation. As your trusted advisors, we’re committed to helping you navigate these changes efficiently and defensively.

Sincerely,

The Dental Accounting Group

Disclaimer: This article represents our current interpretation of ESSB 5814 based on the statutory language and existing Department of Revenue practices. Tax laws and interpretations may change, and specific situations may warrant different approaches. This article is for educational purposes only. Please reach out to your tax advisor accordingly. 

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Running a successful dental practice isn’t just about delivering exceptional patient care — it’s also about making smart financial decisions that protect and grow your business. That’s why choosing the right CPA for dentists can be as important as choosing the right lab or supplier.

For private practice owners, working with a private practice dental CPA offers clear advantages over large, corporate accounting firms. Much like the difference between an independent dental office and a corporate DSO, a private CPA delivers personalized service, aligned incentives, and independent decision-making. We specialize in dental accounting services designed for every stage of your career — from startup tax planning and dental practice growth strategies to retirement transitions — and we do it all with a USA-based dental CPA team that never outsources.

In this article, we’ll compare private vs. corporate CPA models, outline the benefits of partnering with a firm that shares your values, and show why independence matters for both patient care and financial success. Dentists go into private practice for a reason. You want control over your schedule, your patient care, your standards, and the way your business runs. 

The same logic applies to your finances. If you value independence, accountability, and outcomes that truly serve your interests, you need to work with a private practice dental CPA — not a large, corporate accounting machine that has private equity shareholders.  

1. We Care About Clients the Way You Care About Patients

When you run a private dental practice, you know every patient’s name and story. They’re not just a line item on a spreadsheet — they’re people you care about.

That’s exactly how we see our clients.

  • You care about successful treatment outcomes.
  • We care about successful financial outcomes.

And because we’re owners of our firm, our financial incentives are directly tied to your success. When your practice thrives, we thrive. That’s not just a marketing line — it’s our business model.

2. Private vs. Corporate: The DSO Analogy

In dentistry, you know the difference between a private practice and a corporate DSO:

  • In a DSO, decisions are often made far from the operatory by people who have never treated a patient.
  • In private practice, you make decisions with your patients’ best interests at heart.

Large, corporate accounting firms are the DSOs of the financial world. Their size can mean bureaucracy, turnover, and “one-size-fits-all” strategies that don’t fit your unique practice. They have outside investors and management layers whose priorities may not align with yours.

A private practice dental CPA, on the other hand:

  • Makes decisions in-house — no outside investor telling us what to do.
  • Customizes advice based on your goals, not corporate quotas.
  • Builds a long-term relationship with you, not a transactional engagement.

3. Independence Means Better Decision-Making

Because we own our firm outright:

  • We answer only to our clients, not shareholders or a board.
  • We can invest in tools, technology, and continuing education that serve your needs — not corporate cost-cutting measures.
  • We can be nimble — adapting to tax law changes (like the OBBB Act) or shifts in the dental market without waiting for “corporate approval.”

This independence mirrors your freedom as a practice owner to choose your labs, materials, and treatment approaches.

4. We Hire in the USA — Every Day. Never Outsourced.

You’d never outsource crown prep to someone overseas. So why would you let your financial work be sent halfway across the world?

We believe in quality at every step — which means:

  • Every team member is US-based.
  • Every report, forecast, and tax plan is created and reviewed by professionals who understand your business and your regulatory environment.
  • We protect your data and your trust by keeping your information in-house.

5. Quality of Care — From Graduation to Retirement

Your relationship with a private practice dental CPA isn’t just about “doing your taxes.”
It’s about having a financial partner through every stage of your career:

  • Startup: Entity choice, financing strategy, budget planning.
  • Growth: Overhead control, KPI benchmarking, tax optimization.
  • Maturity: Retirement planning, wealth transfer, practice sale strategy.

At each stage, the focus is on outcomes that align with your definition of success — not someone else’s quarterly targets.

6. The Result: Long-Term, Aligned Success

Corporate firms often work in volume. They can afford to lose a client because they’re chasing the next big account.

We can’t — and don’t want to — work that way.
Like you, we want a healthy, sustainable practice, built on trust and quality. That’s why we put in the work to understand your numbers, your vision, and your challenges.

Bottom Line

Private practice dentists choose independence because it delivers better patient care and better outcomes.
The same is true for your financial care. Working with a private practice dental CPA means:

  • Aligned incentives.
  • No outside control.
  • Uncompromising quality.
  • A partner for the life of your career.

Because when you win, we win. And that’s exactly how it should be. 

Questions? – Feel free to reach out to Ke***@******************os.com or Ke***@*****ds.com 

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Press Release

FOR IMMEDIATE RELEASE

Dental Accounting Group Named to Inc. 5000 List for Second Consecutive Year — Leading the Way in Specialized Dental Practice Accounting

Bellevue, WA — August 13, 2025 — Dental Accounting Group, a leading provider of specialized accounting, tax, and advisory services for dental practices, has once again been recognized on Inc. Magazine’s prestigious 2025 Inc. 5000 list of America’s Fastest-Growing Private Companies. This marks the second consecutive year the firm has earned this distinction, underscoring its position as the trusted choice for dentists nationwide seeking financial clarity, compliance, and strategic growth.

The Inc. 5000 list ranks companies based on percentage revenue growth from 2021 to 2024, spotlighting businesses that are driving innovation and resilience in their industries. Dental Accounting Group’s back-to-back recognition highlights not only consistent growth, but also its ability to deliver unmatched value in a highly specialized market.

“Making the Inc. 5000 list for the second year in a row is a direct reflection of our mission — to give dental professionals the financial confidence they need to grow,” said Kevin Bray, Partner & Client Advisor at Dental Accounting Group. “We’re unique in that we only hire full-time W-2 employees based in the United States. We never outsource overseas. Our clients know exactly who’s handling their financial data, and they can trust it’s secure, accurate, and managed by experts who understand the dental industry inside and out.”

Unlike general accounting firms, Dental Accounting Group focuses exclusively on the dental industry. Its services are designed to address the unique operational, regulatory, and financial needs of dental practices. From bookkeeping and tax planning to CFO-level consulting, payroll, bill pay, and cash flow forecasting, the firm’s subscription-style service packages scale with each practice’s growth.

“Our niche focus allows us to see trends and opportunities that others miss,” added Bray. “We pair this deep industry knowledge with an industry-leading technology stack that ensures both security and efficiency. Our clients aren’t just getting accounting — they’re getting a strategic partner invested in their success.”

Why Dental Accounting Group Leads the Industry:

  • 100% USA-Based Team — Every team member is a full-time W-2 employee located in the U.S.

  • Never Outsourced — Sensitive financial data never leaves the country.

  • Industry Expertise — Serving dental professionals exclusively for unmatched insight and guidance.

  • Cutting-Edge Technology — Secure platforms for efficiency and protection.

  • Scalable Service Plans — Flexible options to match any stage of practice growth.

Dental Accounting Group works with practices of all sizes — from solo dentists to multi-location groups — delivering the financial clarity, compliance, and proactive tax strategies that drive profitability and long-term success.

For more information on Dental Accounting Group’s services and to book an initial consultation, visit dentalaccountingpros.com/contact/.

Complete results of the 2024 Inc. 5000, including company profiles and rankings, can be found at Dental Accounting Group’s Inc. 5000 Profile.

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The OBBB (Oh-Triple-Bee as we are starting to call it) Act officially passed and signed into law on July 4th, 2025 by the President. We have been diligently reviewing source material to craft our tax planning approach for 2025 and future years. Please note that we are still waiting for additional IRS guidance, but in the interim, here is a short summary of the key tax provisions:

Key Takeaways for Dentists:

  • Tax rates from the 2017 Tax Cuts & Jobs Act made permanent
    • 10%, 12%, 22%, 24%, 32%, 35%, and 37%
    • Enhanced inflation adjustment for 10%/12%/22% brackets.
  • Qualified Business Income Deduction made permanent at 20%
  • State and Local Tax (SALT) limit raised to $40k ($20K MFS) with a phase-down over $500k of Modified Adjusted Gross Income. Reverts back to $10k in 2030.
  • SALT cap increases 1% per year starting in 2025 through 2029

The Pass-Through Entity (PTE) tax work around was on the chopping block, but in the final Senate version this tax saving strategy for business owners was saved, which will benefit high-earning practice owners in income tax states like California and Montana.

  • Child tax credit increased to $2,200 per child, adjusted for inflation thereafter. Phase out begins at $400k Modified Adjusted Gross Income (if filing jointly).
  • Trump Retirement & Savings Account (Trump Account) is introduced – Invest up to $5,000 per child per year until the child turns 18. Funds must be invested in US stock market index funds. The US Government will give $1,000 per baby born between 2025 – 2028.
    • Employers can make up to $2,500 in nontaxable contributions per employee. We need more guidance from the IRS regarding compliance.
    • Trump accounts grow tax-deferred until the beneficiary withdraws the money.
  • Expanding the use of section 529 tax-advantaged savings accounts for qualified higher education expenses, including “qualified postsecondary credentialing expenses” related to professional licensure. We believe CE programs like AGD, Spears and KOIS fall under this new definition. 
  • Charitable deductions: Under OBBBA, the deduction has been expanded to include a permanent “above-the-line” deduction for taxpayers who do not itemize their deductions. Beginning in 2026, taxpayers who do not itemize can claim a deduction of up to $1,000 ($2,000 for those taxpayers who are married filing jointly) for certain charitable contributions. Taxpayers who itemize are subject to a 0.5% floor of their modified adjusted gross income. For example, a household with $300k in MAGI would not be able to deduct the first $1,500 in charitable contributions. New carryover rules would also apply. OBBBA also makes the 60% contribution limit for cash gifts to qualified charities permanent.
  • Green energy tax credits are repealed including electric vehicle credits, installation of home EV charging equipment, and some residential energy credits such as insulation, windows, or energy efficient heating and cooling systems (including solar). Most Inflation Reduction Act (IRA) credits will terminate 2025-2027. 
  • Exemption for overtime pay up to $12,500 per year (2025 to 2028) via a tax deduction (above the line). Must be reported on Form W-2 (waiting on additional guidance).
  • Above the line deduction for auto loan interest up to $10,000 per year (2025 – 2028). The car must be new (not used) and be assembled in the United States.  EV cars are eligible. Debt must have been incurred after 12/31/24. Deduction is completely phased out when income is over $150k ($250k married filing jointly)
  • Senior Citizens aged 65 and older will get an additional $6,000 added to their standard deduction (in an effort to offer relief to those collecting Social Security (2025 – 2028).
  • Health Savings Account (HSA) changes – expanded coverage & eligibility.
  • Employer education plans paying student loan payments – extended permanently.
  • Increasing the filing threshold for Forms 1099-NEC and Forms 1099-MISC from $600 to $2,000, adjusted for inflation.
  • The 100% depreciation deduction is now permanent. This replaces the phase-down of 40% for property after January 19, 2025.
    • A temporary 100% expensing for qualifying structures that start construction in 2025-2028 will be granted.
  • The OBBB Act overhauls federal student loan repayment by eliminating all existing Income-Driven Repayment (IDR) plans and replacing them with the standard repayment plan and the Repayment Assistance Plan (RAP). While RAP caps monthly payments at 10% of discretionary income, it extends the repayment period to 30 years (360 payments) before any remaining balance is forgiven, compared to current plans that offer forgiveness after 10-25 years.
  • The temporary increase to the estate and gift tax exemption has been made permanent and increased further to $15 million.
  • Higher exemptions and phase-out thresholds for the Alternative Minimum Tax have been made permanent, meaning very few taxpayers will be subject to it.
  • Total itemized deductions are subject to a new phase-out for higher incomes. The otherwise allowable deduction is reduced by 2/37 of the lesser of (1) the amount of the itemized deductions or (2) the amount of the taxpayer’s taxable income that exceeds the start of the 37% tax rate bracket.

Impact for Dental Practice Owners:

Most of our clients will continue to benefit from key tax provisions passed in the original Tax Cuts and Jobs Act (TCJA) from 2017. We continue to review text from the One Big Beautiful Bill Act and participate in CPA industry group discussions. We will keep you updated as information becomes available from the IRS.

Any Questions? Feel free to reach out to our office.

-Your Dental Accounting Group

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2025 brings some notable changes to local taxes in Washington State. 

Capital Gains Tax 

The Washington capital gains tax has been in place for a few years now.  Washington taxpayers are subject to a 7% tax on long-term capital gains that exceed an annual threshold (currently $270,000).  An additional 2.9% tax is now being added for taxable gains above $1 million.  This retroactively applies to any gains realized as of January 1, 2025. 

With the annual exemption, this essentially means you must have long-term capital gains of $1,270,000 before the additional tax applies.  The first $270,000 is still exempt, and gains from $270,000 – $1,270,000 are still taxed at 7%.  Only the gains exceeding this amount are taxed at 9.9%. 

There are no changes to the existing exemptions and deductions, such as gains on real estate, retirement accounts, and qualified family-owned small businesses. 

Estate Tax 

Many are aware of the increased federal estate tax exemption.  When someone dies, they can leave assets to their heirs without paying any estate tax as long as the estate is under $13.99 million (or $27.98 for a married couple).  This effectively means that very few people need to worry about the federal estate tax.  (Note that this is currently scheduled to sharply decrease next year, although legislation is currently in the works that could extend it). 

However, many states also have a state estate tax, including Washington.  The state exemption is currently much lower, at $2.193 million and has been unchanged for several years.  It will increase to $3 million on July 1, 2025, and it will be indexed to inflation each subsequent year.  Note that unlike the federal exemption, this is not “portable” between spouses, meaning you cannot double the exemption to get $6 million per couple.  When the first spouse dies, everything can pass to the surviving spouse tax free.  But when the second spouse dies, they will only be entitled to a $3 million exemption, the same as someone who was never married. 

While the increased exemption will allow more people in the state to avoid the state estate tax, once you are above that exemption, the rate at which you pay the estate tax is increasing.  Similar to the federal income tax, the state uses progressive brackets where larger estates pay a larger percentage in taxes.  The rates currently range from 10%-20%, but the top bracket will now increase to 35%. 

Taxable Estate (amount above exemption) 

Current Rates 

Rate as of 7/1/25 

<$1m 

10% 

10% 

$1m – $2m 

14% 

15% 

$2m – $3m 

15% 

17% 

$3m – $4m 

16% 

19% 

$4m – $6m 

18% 

23% 

$6m – $7m 

19% 

26% 

$7m – $9m 

19.5% 

30% 

>$9m 

20% 

35% 

Business owners can also take advantage of another exclusion, if the value of the business owned makes up over 50% of the taxable estate and has been actively operated by the decedent or a family member for at least five of the previous eight years.  Currently, you can exclude $2.5 million of the business from your total estate value.  That amount is increasing to $3 million. 

However, if the business is later sold, or the business no longer qualifies within three years of death, the State can go back and assess tax on the business as if it had been included in the taxable estate. 

Should you have any questions on these tax changes, or how you can best plan to limit your exposure, please do not hesitate to reach out to us. 

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