Short year 1120

[Pacun]

A client started a C corp on October 05, 2016. According to the IRS letter, the IRS is expecting form 1120 by January 15 2018. Which makes me believe that they requested or were granted a fiscal. Client wants to file calendar year and so do I. I have prepared the very first return with the income and expenses for October, November and December, 2016 and I wonder if I need to send form 1128 with this filing.

Since this is the initial return, wouldn't the IRS automatically adjust the filing requirement to a calendar year?

 

[rfassett]

1128 will not be necessary. Your initial return will establish the year end. Make sure you put the dates of the initial year on the return.

[Pacun]

I have the date incorporated as 10/05/2016 and the program is giving a yellow alert.

Do you mean to enter 01/01/2016 and ending date 12/31/2016 on top?

[rfassett]

No - the dates at the top would be 10/05/16 to 12/31/16 to establish the short year and the calendar year end.  Sorry if my comment added confusion.

[Pacun]

THANK YOU... WHERE IS THE DONATION BUTON.... THIS SITE IS SO USEFUL AND YES I AM SCREAMING.

[ILLMAS]

 

"Unless you have a required tax year, you adopt a tax year by filing your first income tax return using that tax year. A required tax year is a tax year required under the Internal Revenue Code and the Income Tax Regulations."

Changing your tax year

Once you have adopted your tax year, you may have to get IRS approval to change it.  To get approval, you must file Form 1128 (PDF).  See the instructions for Form 1128 for exceptions. If you qualify for an automatic approval request, a user fee is not required. If you do not qualify for automatic approval, a ruling must be requested and a user fee is required. See the instructions for Form 1128 for information about user fees if you are requesting a ruling.

If you initially apply for a fiscal year and the IRS aprroves it wouldn't that count as a required tax year?

[jklcpa]

Rfassett was correct that Form 1128 is not required.  The initial year will be governed by its first filing.

From the 1128 instructions under "Exceptions" - 

Do not file Form 1128 in the following circumstances:

Corporations - A corporation adopting its first tax year.

 

[ILLMAS]

7 minutes ago, jklcpa said:

Rfassett was correct that Form 1128 is not required.  The initial year will be governed by its first filing.

From the 1128 instructions under "Exceptions" - 

Do not file Form 1128 in the following circumstances:

Corporations - A corporation adopting its first tax year.

 

Thanks