EFTA Document EFTA01919374

To: Jeffrey E.fleevacationfpgmail.comj From: Richard Merkin Sent Mon 6/30/2014 11:55:22 PM 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:jeevacation©gmail.com] Sent: Monday, June 30, 2014 4:47 PM To: Richard Merkin Subject: http://www.irs.gov/pub/irs-pdei3 I I5.odf http://www.irs.gov/pub/irs-pdf/f3 I 15.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 EFTA_R1_00361517 EFTA01919374 communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to jeevacation@gmail com and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA_R1_00361518 EFTA01919375