A new entity generally adopts a permissible tax year by filing its first federal income tax return using that tax year; no Form 1128
, Application to Adopt, Change, or Retain a Tax Year, needs to be filed.
A taxpayer normally requests the commissioner's approval by filing Form 1128
and an appropriate user fee by the 15th day of the second calendar month following the close of the resulting short period.
Proposed changes in accounting method (submitted on form 3115) or accounting period (submitted on form 1128
An existing S corporation generally uses Form 1128
, Application to Adopt, Change, or Retain a Tax Year, to apply for a change in a permitted fiscal year.
For example, if you enter "accounting period" (or click on the item in a scrolling index), both request for change Form 1128
and notice of denial Form 8683 are listed.
In the past, those seeking such changes--and in some cases those who wanted to adopt or retain an accounting period -- had to file a formal ruling request with the IRS commissioner using either Form 1128
, Application for Change in Accounting Period, or Form 3115, Application for Change in Accounting Method.
1.964-1T(c)(3) must be met; further, the designated shareholder must complete and file Form 1128
, Application to Adopt, Change, or Retain a Tax Year, on behalf of the foreign corporation, with its tax return for its tax year with or within which the foreign corporation's effective year ends.
: Application to Adopt, Change, or Retain a Tax Year
2000-11, the corporation had to file an expedited Form 1128
on or before the short-period return's due date.
Finally, the new procedure extends the period for filing Form 1128
, Application to Adopt, Change, or Retain a Tax Year, to the due date of the taxpayer's return (including extensions) for the first effective year.
Finally, the corporation would still be required to file a Form 1128
, Application to Adopt, Change or Retain a Tax Year, on or before the due date (including extensions) for filing its Federal income tax return for the short period required to make the change effective.
Taxpayers must file an application on Form 1128
, Application to Adopt, Change, or Retain a TaxYear.