Jump to content
ATX Community

Change of Fiscal Year


Edsel

Recommended Posts

A C corp has a fiscal year end of April 30th.

There were dramatic things that happened in May.  Is there a way to change the fiscal year?

I'm thinking of filing a "short year" for the  period May 1 - May 31 in 2019, paying the penalty, and then reporting for Jun 1 19 to May 31 20.  Can this be done?

Link to comment
Share on other sites

Off the top of my head I will say that you need to prove there is a business purpose for change, other than to save a bunch of taxes.

Also the short year has to be annualized.

Have you tried researching this procedure?  There are special forms to file and possible user fee.

Link to comment
Share on other sites

Changing the fiscal year requires filing form 1128.  You might want to check into that and see what they ask for.  If you are on a fiscal year, the only time you could change to a short year is if you are going to a calendar year.   There is also a 48 month look back period for making a second change.

Link to comment
Share on other sites

16 hours ago, Max W said:

If you are on a fiscal year, the only time you could change to a short year is if you are going to a calendar year.

Hi Max - is the requirement above true for a C Corp?  No annualization of rates since they are all the same.  This is not a second change, and there is not 48 months worth of history.

Thanks for responding, Edsel

Link to comment
Share on other sites

18 hours ago, DANRVAN said:

Have you tried researching this procedure?  There are special forms to file and possible user fee.

Yes I always do some research before asking questions before wasting other people's time.  Problem is, the research ends up with perplexing and language difficult to understand.  For example, on this topic I have researched the instructions for Form 1172.

 

Link to comment
Share on other sites

2 hours ago, Edsel said:

I have researched the instructions for Form 1172.

 

As Max pointed out the form is 1128.  In your case you will complete the section asking for a ruling request.   You must also attache a statement explaining the legal basis for the change in fiscal year.  The form also refers to the user fee.

Your research should have taken you to RP 2009-39 which emphasizes the need for a business purpose; and the reality that permission  is granted  "only in rare and unusual circumstances."  

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...