Ajit, a public accounting sole practitioner, has reached a breaking point. All of his clients

use the calendar year to report income. Many of the clients are S corporations and

partnerships. Ajit's workload the first four months of the year is so heavy that it is putting

the quality of his work at risk.

Ajit is considering telling his clients that any new partnership or S corporation that is

formed must timely elect, under the required tax payments system, to use a fiscal year

ending September $30($assuming that the required year would otherwise be a calendar

year$).$ Although the shareholders and partners would be subject to the required tax

payments rule, Ajit will sell the plan to them by promising better service. Evaluate the

plan proposed by Ajit.