WITAXLADY Posted November 15, 2013 Report Share Posted November 15, 2013 So client formed a new s corp and is making a good amount of money. Wants to end year Sept 30thbso his 2013. So his personal year in one is less. Is this llegal. Possible? Please advise? Thx asap d Quote Link to comment Share on other sites More sharing options...
jklcpa Posted November 15, 2013 Report Share Posted November 15, 2013 Yes, it is possible for an S corp to have a fiscal year. It's a sec 444 election, and requires filing form 8716. It also requires that the S corp pays the tax on the deferral period each year via form 8752. Years ago I had an existing S corp that wanted to keep its June 30 fiscal year end for no other reason than that's how it had always reported. I didn't see any advantage since the corp is basically paying tax on the deferral period that is like a deposit held by the IRS. http://www.irs.gov/pub/irs-pdf/f8716.pdf http://www.irs.gov/pub/irs-pdf/f8752.pdf Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted November 18, 2013 Author Report Share Posted November 18, 2013 Thank you. However, can he switch to the calendar year after this? Quote Link to comment Share on other sites More sharing options...
jklcpa Posted November 18, 2013 Report Share Posted November 18, 2013 Yes, the calendar year is a permitted year. I believe the procedure is found in the instructions to Form 1128. Quote Link to comment Share on other sites More sharing options...
Guest Taxed Posted November 18, 2013 Report Share Posted November 18, 2013 Do any of you charge little extra for fiscal year returns? I do because i have to spend extra time reconciling their books. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted November 19, 2013 Report Share Posted November 19, 2013 Of course. Always extra work involving payroll, if nothing else. Quote Link to comment Share on other sites More sharing options...
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