Single Member LLC, filing Sched. C - cash to accrual

[SunTaxMan]

Single member LLC, filing Schedule C (in 2006 and prior), crossed $1 Million Gross Sales in 2007. Change needs to be made from cash to accrual. Question:

Do I simply change the Schedule C from cash to accrual with no other comment?

Do I NEED to file 3115, since this is an "automatic" change?

I assume there is no fee for the change because it is "automatic" - correct?

Thanks,

[outwest]

1st a technical note..

the 1 million threshold is the average of the last three years. Which means the first year you cross 1 million may not be the year you are required to make the change.

On a practical note, yes, you must do the 3115. No user fee but be careful with the section 481 adjustments.