Tax for Physicians and Physician Groups
Why Tax Preparation Is Complicated for Physicians and Physicians Group
When it’s time to file a federal income tax return for your Physicians and Physicians Group practices, there are a variety of IRS forms for Federal Tax Return and State Tax Return form to file your annual Business Tax Return , depending on whether you run the business as a sole proprietorship, or Partnership or use a separate legal entity such as a LLC or S or C Corporation.
Choice of Entity for Physicians, Physicians Groups and Medical Professionals
A Corporation or Limited Liability Company (LLC) separates your liability for your practice from your individual liability to afford protection of your assets but you have to keep more detailed and segregated records for which we offer bookkeeping services.
Some Physician practices use a sole proprietorship which allows them to report all of their business income and expenses on a Schedule C attachment to their personal income tax return. If you run the business as an LLC and you are the sole owner, the IRS also considers you to be a sole proprietorship that also uses the Schedule C attachment. However, if your business is organized as a S or C Corporation or you elect to treat your LLC as one, then we will prepare a separate corporate tax return using Form 1120 for C-Corporations or Form 1120S for S-Corporations. Multi-member LLCs are considered partnerships and typically file Form 1065.
The income of S Corporation or Multi-member LLC is passed through to your Personal Tax Return to avoid double taxation.
Spry Associates, CPA, Services for Physicians, Physicians Groups, and Medical Professionals
Spry Associates, CPA prepares appropriate Annual Tax Return for your types of business entities for mandatory Federal and/or State Tax Return filing reporting your business revenue, cost of services, gross profit, expenses net income and expenses and your tax obligations for your business income either passing through to your individual tax return through IRS Form K-1 S or IRS form 1065 . Regardless of the form you use, we prepare your Tax Returns to calculate your taxable business income with all deductible business costs and expenses in compliance with Federal Tax and State Tax regulations.
Important And Unique Challenges for Physicians, Physicians Groups, Medical Professions
Remember, your practice uses capital assets like machines, and consumables like medical and diagnostic supplies, independent contractors, medical assistant or office secretary office facility, services of nurses or support staff as employees. You may have sizable amounts tied to Capital Assets, and sizeable periodic expenses on office facility, or support staff in your business for recurring expenses to take care of. you can also take accelerated Depreciation Expenses or expense write off against Capital Assets to pay lower taxes in your earlier period of operation or Capitalize part of your expenses to compliance to IRS and FTB regulations and rules.
The process of creating Tax Return is easier if we are helping you on your accounting, or bookkeeping services .otherwise we will request you a Trial Balance of all revenue and balance sheet account, and will talk to you about any further details or request.
Remember Tax Return Filing Deadlines
Be aware of different filing deadlines. When you use a Schedule C, it becomes part of your Form 1040 and therefore, no separate filing deadlines apply. It is generally subject to the same April 15 deadline.
If you are taxed as a C-Corp, you need to file a Form 1120, you must file it by the 15th day of the fourth month following the close of the tax year, which for most taxpayers is April 15 or the next business day if it falls on a weekend or holiday. If you are taxed as an S-Corp or as a partnership, you need to file a Form 1120S or Form 1065. These forms are due by the 15th day of the third month following the close of the tax year, which for most taxpayers is March 15. You cannot send this form to the IRS with your personal income tax return on April 15.
If you are taxed as a C-Corp, you need to file a Form 1120, you must file it by the 15th day of the fourth month following the close of the tax year, which for most taxpayers is April 15 or the next business day if it falls on a weekend or holiday. If you are taxed as an S-Corp or as a partnership, you need to file a Form 1120S or Form 1065. These forms are due by the 15th day of the third month following the close of the tax year, which for most taxpayers is March 15. You cannot send this form to the IRS with your personal income tax return on April 15.
Disclaimer: This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Spry Associates, CPA assumes no liability for actions taken in reliance upon the information contained herein.