Tax Reserves

12 Months Ended

Dec. 31, 2019

Tax Reserves [Abstract]

Tax Reserves

Note 8. Tax Reserves

Tax reserves relate to state nexus. Key judgments are reviewed annually and additional adjustments to state nexus were made to reflect current assessments. The years 2016 through 2019 are subject to examination by the IRS, and various years are subject to examination by state tax authorities. MEDITECH accounts for the annual change in tax reserves as part of its provision for income taxes. The components of tax reserves for the three years ended December 31 are as follows:

	2017	2018	2019
Potential tax assessment	$9,362,662	$8,586,336	$11,952,402
Interest and penalties	9,222,104	8,452,946	5,458,880
Tax reserves	$18,584,766	$17,039,282	$17,411,282