Neil &  Company CPAs, PC

A Professional Corporation

1184 North 15th Street, Bozeman, MT 59715

 

Phone: 406-587-9239

 

November 2019

November 2019 Client Profile

Article Image

William’s business is tourist-dependent and earns most of its money during the warmer months. He has always filed his tax return based on the calendar year, but would like to change it to a fiscal year ending in October. What does he need to do?


First, William should make sure he is eligible. The IRS says if you file your first return using the calendar tax year and later become a sole proprietor, a partner in a partnership or a shareholder in an S corporation, you must continue to use the calendar year unless you get IRS approval to change it or meet one of the exceptions listed in its Form 1128 instructions.


You must adopt the calendar year if, among other reasons, you don’t keep books or records, have no annual accounting period or your present tax year does not qualify as a fiscal year.


William may even qualify for automatic IRS approval to change his tax year. A tax professional can help determine that as well as whether changing the tax year is the right course of action.


Client Profile is based on a hypothetical situation. The solutions we discuss may or may not be appropriate for you.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox every month.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.