Physician Tax Planning: 3 Tax Mistakes We Found on Clients’ Returns

Over the past few months, we've caught several tax return issues during our routine reviews for clients.

Just this year, we found:

• A backdoor Roth IRA that wasn't reported correctly because the accountant never received Form 1099-R.

• A missing Form 8606, which caused unnecessary taxable income and created future basis-tracking problems.

• Missed state 529 contribution deductions because no tax form is automatically generated.

In one case, clients were literally mailing paper documents to their accountant.

Here's the important point:

None of these errors happened because the tax code was unusually complex. They happened because information fell through the cracks.

The IRS receives copies of Forms 1099-R directly. So, if a distribution occurred, the IRS sees it—even if your accountant never received the form. If the tree falls in the woods, the IRS hears it!

That's why we encourage clients to work with a CPA or EA who communicates well with their financial advisor. We know plenty of those! Tax planning isn't just about preparing a return once a year. It's about coordinating investment decisions, retirement accounts, charitable giving, and tax strategy throughout the year.

The best outcomes happen when your financial advisor and tax professional operate as one team instead of two separate silos.

Physicians have enough on their plates. Your financial life shouldn't require you to quarterback communication between your professionals.

If you're interested in learning more about our integrated approach, we'd be happy to connect.

Schedule a complimentary Exploratory Meeting below.

https://calendly.com/caligiurifinancial/consultation

Investment advice offered through Stratos Wealth Partners, Ltd., a registered investment advisor. Stratos Wealth Partners, Ltd. and Caligiuri Financial are separate entities. Caligiuri Financial operates as a DBA branch of Stratos Wealth Partners, Ltd. The information contained in this commentary reflects the opinions of Caligiuri Financial. These opinions do not reflect the views of others and are subject to change without notice. Content in this material is intended for general information purposes only and should not be construed as specific investment advice or recommendations for any individual. Please contact your advisor with any questions or for specific recommendations regarding your own circumstances. Investing involves risks including possible loss of principal.

Neither Stratos nor Caligiuri Financial provides legal or tax advice. Please consult legal or tax professionals for specific information regarding your individual situation.