Drilling It Down

In this episode of Drilling It Down, Wes hosts David Matthews, a sell-side representation expert, as they delve into the intricate world of the Employee Retention Tax Credit. They explore the nuances of claiming this credit, emphasizing the significance of staying updated amidst evolving IRS enforcement and regulatory changes. The conversation goes into into eligibility criteria, potential risks of non-disclosure, and red flags that could trigger IRS scrutiny. David and Wes stress the importance of seeking professional advice and participating in the IRS's voluntary disclosure program if discrepancies are suspected.

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Listen to our sister show, Next Gen DDS! An all-in-one resource for dental students, residents, and early career doctors, discussing both clinical and business aspects of dentistry, hosted by Wes Lyon and Dr. Scott Menaker.

In this episode, Wes and Liam cover updates from the ERC article, the influence of interest rates on practice values, and the hurdles confronted by private equity firms in the dental sector. Additionally, they explore the bipartisan tax code agreement under scrutiny in Congress and its likely consequences. The conversation underscores prevalent errors in retirement plan structuring, like inaccurate owner salaries and plan classifications, stressing the significance of meticulous planning and optimizing spouse contributions.

Drilling It Down host, Wes Lyon, is joined by dental practice transitions advisor, Jonathan Martin. Jonathan has nearly 20 years of experience in the transitions space with McGill & Hill Group.

On this episode, Wes and Jonathan specifically highlight the changes that have occurred in recent years in the Dental Service Organization (DSO) market. They also touch on financial struggles, broker motivations, and the importance of planning early for a successful transition. Stay tuned for more insightful discussions on dental practice transitions, and many other topics pertinent to dentists and specialists today.

On this episode, Wes and Mario discuss the challenges dental practices face in hiring and retaining hygienists, what to do to avoid estate taxes, and the IRS' crack down on ERC claims.

How should you determine your hygienists' pay structure? Mario discusses our preferred method: a hybrid structure of base pay plus bonus based on production. The guys go into the details of how this looks in practice.

They then discuss the new estate tax rules going into effect in 2026. Some of your estate may be exempt if you pass away soon, but that limit will be cut in half in the coming years.

Lastly, the guys briefly touch on the ERC. A full webinar and podcast article were released on this topic, so make sure you listen and watch those as well!

In this episode, Wes and Tyler discuss withdrawing an ineligible employee retention credit (ERC) claim, making accurate amendments, and consulting a CPA.

They also mention the voluntary disclosure program for those who received fraudulent checks. The deadline for self-reporting is March 22nd, 2024. Cooperation with the IRS and relying on a CPA is crucial. The voluntary disclosure process is recommended. Stay updated through our podcast and have a fantastic new year.

In this episode of Drilling It Down, Mario and Tyler discuss the Employee Retention Credit (ERC) and provide important updates and warnings regarding its application. They highlight the recent guidance from the IRS and caution listeners about fraudulent submissions and contingent fees charged by some CPAs. The hosts stress the need for understanding the qualifying factors for the ERC and the potential for having to repay credits if audited. They also address the creative tactics used by promoters to meet the government order test and mention that clearer guidance from the IRS is forthcoming.

The conversation then shifts to tax planning before the end of the year. The hosts discuss the Augusta Rule as a significant tax planning item, emphasizing the need to take advantage of it and explaining its three main aspects: business events, renting out a house for 14 days or less, and a reasonable rental rate. Documentation is emphasized as crucial in utilizing the Augusta rule. Staff compensation and renting out homes are also touched upon, with a caution against blind purchases for tax write-offs unless necessary. Profit sharing is recommended as another important tax planning item.

Turning to investments, the hosts stress the importance of understanding fees and seeking advice from financial advisors with fiduciary duty. They also mention the need to follow rules when transferring funds from a 401k to an IRA. The conversation delves into the topic of doctors being sold products not beneficial to them, and the hosts emphasize the importance of finding a Certified Financial Planner™ operating under a fiduciary duty. Transparency in fees is crucial, as is investing in low-cost products.

The conversation further explores improving patient satisfaction at practices, highlighting the challenges of payment collection and the need for improved processes and technology-based payment solutions. Automating payments, integrating with dental software, and storing credit cards on file are suggested as methods to streamline processes and improve the patient experience. The hosts mention how positive feedback from patients can set practices apart from the competition. By outsourcing tasks and investing in technology, dental practices can enhance efficiency, reduce costs, and improve overall operations.

The episode then touches on optimizing profitability through patient experience and staff compensation. The hosts recommend aiming for a 10 rating and considering inflation when giving raises. Merit-based raises and bonuses are advised for high-performing employees, along with tax-advantaged benefits such as dependent care reimbursement. The importance of staff compensation in line with industry standards and providing clear communication of benefits is emphasized.

To learn more about these topics, please visit mcgilladvisory.com.

In this episode of Drilling It Down, host Wes Lyon welcomes Liam Fitzgerald to discuss a series of articles. They primarily focus on the issue of PPOs (Preferred Provider Organizations) and the impact they have on dental practices. They mention that the value of a practice can be impacted by how money is handled, particularly when it comes to writing off expenses and dealing with insurance companies. Effective communication with patients regarding insurance changes is also highlighted, and success stories of young doctors who have purchased practices and implemented new models that patients appreciate are shared. The financial and time-related benefits of reducing reliance on PPOs are discussed, as well as the negative impacts of not paying attention to insurance-related matters.

The conversation then transitions to a discussion about the Employee Retention Credit (ERC) and how some dentists are claiming large sums of money without a clear understanding of how they became eligible for such amounts. The hosts advise listeners to consult with their CPA and not trust promoters who claim to have a better understanding of the rules. They explain the conditions to be met in order to qualify for the ERC and caution against fraudulent claims.

They also discuss the potential impact of rising interest rates on sectors such as auto dealers and commercial real estate. The hosts stress the importance of providing a good experience for dental patients and being flexible with payments during a potential recession. They urge caution when assuming everyone has the same financial stability as before and emphasize the need for a good plan to navigate through a recession.

Diversification in investment portfolios is encouraged, with an emphasis on non-correlated assets and investments in small and mid-sized companies. The importance of bonds in providing stability during a poor sequence of returns is also highlighted. They further discuss the importance of choosing high-quality bonds with short to intermediate terms and

caution against reaching for higher yields by buying individual bond certificates. The importance of assessing the diversification, asset allocation, and actual holdings of bond funds is stressed to ensure they serve their purpose as a safety net for portfolios.

Have you ever wondered what the financial implications of aligning with a Dental Service Organization (DSO) might be? Understand the inherent risks and rewards as we dive deep into the turbulent world of dental services. We explore the impact of inflation and rising interest rates on the value of dental practices. Simultaneously, we bring to light the disappointing outcomes some dentists have faced due to unfulfilled promises from DSOs. In these transactions, we emphasize the importance of maximizing cash and minimizing risky components like stock and earn-outs.

The landscape of dental practice transitions is shifting - with an incredible lean towards partnerships. We share insights into this remarkable transition, discussing the potential benefits, the significance of timing when selling a practice, and how early planning can make all the difference. If you're contemplating selling your practice or considering partnerships, this episode will provide a balanced perspective. Jonathan shares his wisdom on the potential of selling to a DSO, the attractiveness of a partnership, and the importance of understanding your financial situation early on to avail the best options.

Finally, we tackle the crucial factors of cash flow management, retirement planning for doctors, and the advantages of money market funds in an era of rising interest rates. We expose the risks of tax fraud when claiming employee retention tax credits, and discuss strategies for year-end planning. Don't miss out on this wealth of knowledge that is especially useful for those running a dental practice. Join us for an enlightening, and possibly life-altering, discussion on these critical financial topics.