EFTA02365229

From: Richard Merkin Sent: Monday, June 30, 2014 11:55 PM To: jeffrey E. Subject: RE: Thanks, very helpful. Preliminarily the accountant suggested that if I switched from an accrual to a cash basis it would trigger a tax on our IBNR (money owed to doctors and hospitals). From: jeffrey E. [mailto:[email protected]] Sent: Monday, June 30, 2014 4:47 PM To: Richard Merkin Subject: http://www.irs.gov/pub/irs-pdf/i3115.pdf http://www.irs.gov/pub/irs-pdf/f3115.pdf Once you have set up your accounting method and filed your first return, you must get IRS approval before you change the method. In general, you must file a current Form 3115 to request a change in either an overall accounting method or the accounting treatment of any item. The following are changes in accounting method that require approval from the IRS: • Switching from a cash basis method to an accrual basis method; • Switching from an accrual basis method to a cash basis method; • Change in method or basis used to value your inventory; and • A change in depreciation or amortization method (exception: some changes in the straight-line method are permitted without permission from the IRS.) When and Where To File Form 3115 please note The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of JEE Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have EFTA_R1_01360361 EFTA02365229 received this communication in error, please notify us immediately by return e-mail or by e-mail to [email protected] <mailto:[email protected]> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved 2 EFTA_R1_01360362 EFTA02365230