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Question: JIM currently uses the calendar year as its financial and tax annual accounting period. Management, because of the seasonality of sales, wants to change to a fiscal year beginning April 1st through March 31st. You have been asked to review the tax law criteria for making this change.
1. Write a memo to your CFO:
• indicating the outcome of such a change on current taxes, and
• outlining the requirements for making this change.
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