Income Tax Accounting

3 Months Ended

Mar. 31, 2020

Income Tax Accounting [Abstract]

Income Tax Accounting

Note 6. Income Tax Accounting

MEDITECH follows the provisions of ASC 740-10, Accounting for Income Taxes. Deferred taxes relate to the earlier recognition of certain revenue and the later recognition of certain expenses for tax purposes. They also relate to the increase in fair market value over the cost basis of marketable securities. Tax reserves relate to the uncertainty of state nexus. Key judgments are reviewed annually and adjusted to reflect current assessments. The years 2017 through 2019 are subject to examination by the IRS, and various years are subject to examination by state tax authorities.