Privacy Act and Paperwork Reduction Act Notice.
We ask for the information on this form to carry out the Internal
Revenue laws of the United States. Section 442 says that you must
obtain IRS approval if you want to adopt, change, or retain a tax
year. To obtain approval, you are required to file an application to
adopt, change, or retain a tax year. Section 6109 requires that you
disclose your taxpayer identification number (SSN or EIN). Routine
uses of this information include giving it to the Department of
Justice for civil and criminal litigation, and to cities, states, and
the District of Columbia for use in administering their tax laws.
Failure to provide this information in a timely manner could result in
approval of your application being delayed or withheld.
You are not required to provide the information requested on a form
that is subject to the Paperwork Reduction Act unless the form
displays a valid OMB control number. Books or records relating to a
form or its instructions must be retained as long as their contents
may become material in the administration of any Internal Revenue law.
Generally, tax returns and return information are confidential, as
required by section 6103.
The time needed to complete and file this form will vary depending
on individual circumstances. The estimated average times are:
| |
Recordkeeping |
Learning about the law or the form |
Preparing and sending the form to the IRS |
| Parts I and II |
8 hr., 37 min. |
6 hr., 34 min. |
6 hr., 59 min. |
| Parts I and III |
20 hr., 49 min. |
5 hr., 26 min. |
7 hr., 13 min. |
If you have comments concerning the accuracy of these time
estimates or suggestions for making this form simpler, we would be
happy to hear from you. You can write to the Internal Revenue Service,
Western Area Distribution Center, Rancho Cordova, CA 95743-0001.
DO NOT send the tax form to this office. Instead, see
Where To File on page 2.
General Instructions
Purpose of Form
File Form 1128 to request a change in tax year. Partnerships, S
corporations, or personal service corporations may be required to file
the form to adopt or retain a certain tax year. For more information,
get Pub. 538, Accounting Periods and Methods.
Who Must File
Generally, the following taxpayers file Form 1128, Individuals,
partnerships, estates, tax-exempt organizations.
- Corporations, S corporations, personal service corporations,
cooperatives, possession corporations that have a section 936 or
section 30A election in effect, controlled foreign corporations,
foreign personal holding companies, foreign sales corporations or
interest-charge domestic international sales corporations, specified
foreign corporations, passive foreign investment companies, other
foreign corporations, and homeowners associations to change their tax
years.
In addition, the following taxpayers file Form 1128.
- Partnerships and personal service corporations (PSCs) -
To adopt a tax year other than a required tax year.
- Partnerships, S corporations, and PSCs - To retain a
tax year other than a required tax year. For example, a corporation
that now qualifies as a PSC must file Form 1128 if it wants to retain
its current fiscal year.
- All filers - To correct an improper tax year as
described in Rev. Proc. 85-15, 1985-1 C.B. 516.
- The common parent of a consolidated group that files a
consolidated return files one Form 1128 for the consolidated group. In
addition, the common parent corporation must (a) indicate
that the Form 1128 is for the common parent corporation and all its
subsidiaries, and (b) answer all relevant questions on the
application for each member of the consolidated group.
If a consolidated group filing a consolidated return wants to
change its tax year by using Rev. Proc. 2000-11, 2000-3 I.R.B. 309,
every member of the group must meet the revenue procedure
requirements.
- Filers requesting a 52-53-week tax year - File Form
1128 to get prior approval of a change to or from a 52-53-week tax
year to any other tax year, including another 52-53-week year.
For more information, see Temporary Regulations section
1.441-2T(c)(4), Regulations section 1.1502-76(a)(1), and Pub. 538.
However, if the applicant qualifies, these changes may be made
under the expeditious approval procedures under Rev. Proc.
2000-11 discussed on page 3.
Who Does Not File
Taxpayers do not file Form 1128 in the following
circumstances.
Corporations
- A corporation that meets the terms of Regulations section
1.442-1(c) and files the required statement with its tax return to
change its tax year.
- A subsidiary corporation required to change its tax year to
file a consolidated return with its common parent (see Regulations
sections 1.442-1(d) and 1.1502-76(a)).
- A foreign sales corporation (FSC) or an interest-charge
domestic international sales corporation (IC-DISC) changing to the tax
year of the U.S. shareholder with the highest percentage of voting
power (see section 441(h)).
- A specified foreign corporation (SFC) defined in section
898(b)(1) conforming its first taxable year beginning after July 10,
1989 to the required tax year, including an SFC that is treated as a
controlled foreign corporation (CFC) making the 1-month deferral
election under section 898(c)(1)(B) as described in Rev. Proc.
90-26, 1990-1 C.B. 512.
- An SFC changing its tax year back to a previous tax year as
described in Notice 95-13, 1995-1 C.B. 296.
Partnerships, S Corporations, and Personal Service Corporations
- A corporation electing to be treated as an S corporation
and filing Form 2553, Election by a Small Business
Corporation.
- A partnership, S corporation, or PSC terminating a section
444 election (see Temporary Regulations section
1.444-1T(a)(5)).
- A partnership, S corporation, or PSC that intends to adopt,
change to, or retain a required tax year (usually a calendar year, see
Rev. Proc. 87-32, 1987-2 C.B. 396).
- A partnership, S corporation, or PSC that elects a tax year
other than the required tax year by filing Form 8716,
Election To Have A Tax Year Other Than a Required Tax Year.
52-53-Week Tax Year Taxpayers
A taxpayer, including a partnership, changing to a 52-53-week tax
year does not file Form 1128 if the 52-53-week year ends with
reference to the same calander month as its previous tax year ended,
and the taxpayer keeps its books and computes its income on the new
52-53-week year.
See Regulations section 1.441-2T(c)(2).
Individuals
Newly married individuals changing to the tax year of the other
spouse in order to file a joint return (Regulations section 1.442-1(e)
must be followed).
Exempt Organizations
An organization exempt under section 501(a) does not file Form
1128 unless the organization has changed its tax year at any time
within a 10-calendar-year period, and the organization has had an
annual filing requirement during that 10-year period (see Rev. Proc.
85-58, 1985-2 C.B. 740). This exception does not apply to
organizations exempt from tax under sections 521, 526, 527, or 528;
organizations described in section 401(a); and organizations involved
in a group change in tax year for all its subordinate organizations.
Trusts
- A trust (other than a tax-exempt trust or a grantor trust
under Rev. Rul. 90-55, 1990-2 C.B. 161) that adopts the calendar year
as required by section 645.
- An employee plan or trust filing Form 5308,
Request for Change in Plan/Trust Year, to change its plan or
trust year.
When To File
Tax Year Change
- To request a ruling to change a tax year, file by the 15th
day of the 2nd calendar month after the short period ends. For
example, to change to a calendar year, file by the 15th day of
February of the next year.
- To change a tax year under Rev. Proc. 2000-11, file by
the due date of the return (including extensions) for the short period
required by the change.
- To change a tax year under Rev. Proc. 85-58, file by the
15th day of the 5th calendar month after the short period ends.
- For an individual filing to change to a calendar year under
Rev. Proc. 66-50, 1966-2 C.B. 1260, as modified by Rev. Proc. 81-40,
1981-2 C.B. 604, file by the last day of January.
Tax Year Adoption
For partnership adoptions, file by the end of the month following
the close of the requested tax year.
For other adoptions, file by the due date (not including
extensions) for filing the first income tax return for that tax year.
See Temporary Regulations section 1.441-1T(b)(2).
Tax Year Retention
To retain a tax year, file by the 75th day of the beginning of the
tax year for which the retention applies.
Late Applications
A Form 1128 that is filed after the appropriate due date stated
above is considered a late application.
However, applications filed within 90 days after the time required
for filing may be considered as timely filed under Regulations section
301.9100-1 when the applicant establishes that:
- The taxpayer acted reasonably and in good faith, and
- Granting relief will not prejudice the interests of the
Government.
Applications that are filed more than 90 days after the due date of
Form 1128 are presumed to jeopardize the interests of the Government,
and will be approved only in unusual and compelling circumstances.
An extension request filed under Procedure and Administration
Regulations section 301.9100-3 is a ruling request under Rev. Proc.
2000-1, 2000-1 I.R.B. 4 (updated annually), and is subject to public
inspection under section 6110. See section 8 of Rev. Proc. 2000-1 for
information on requesting a ruling.
Note: An extension request under Rev. Proc. 2000-1
or any annual update of Rev. Proc. 2000-1, requires payment of a user
fee.
Early Applications
Generally, an application to adopt or change a tax year will not be
considered if it is submitted more than 60 days before the
close of the short year.
Where To File
Part II filers.
If the applicant completes Part II, (expeditious approval request)
file Form 1128 with the Internal Revenue Service Center, Attention:
Entity Control where the applicant's income tax return is filed.
Part III filers.
If the applicant is filing for a ruling by completing Part III,
file Form 1128 and the appropriate user fee with the National Office.
Mail Form 1128 to the Associate Chief Counsel (Domestic), or the
Associate Chief Counsel (Employee Benefits and Exempt Organizations),
at the following address:
Internal Revenue Service,
Attention: CC:DOM:CORP:T,
P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044.
The IRS will acknowledge receipt of the application within 30 days.
You can inquire about the status of the application by writing to:
Control Clerk, CC:DOM:IT&A,
Internal Revenue Service,
Room 5508,
1111 Constitution Ave., NW,
Washington, DC 20224.
The applicant will receive notification from the National Office of
its approval or denial. If no communication is received from the IRS
regarding the application within 90 days, contact the Control Clerk.
Who Must Sign
Form 1128 must be signed by the applicant as discussed
below. A valid signature by the individual or an officer of the
organization is required on Form 1128. If the form does not have a
valid signature, it will not be considered.
- Individuals. If this application is for a husband
and wife, enter both names on the line, Applicant's name. Both
husband and wife must sign the application on the line, Applicant
or signing official's signature.
- Partnerships. Show the partnership name, followed
by the signature of one of the partners and the phrase Member of
partnership.
- Estates. Show the name of the estate and the
signature and title of the fiduciary or other person legally
authorized to sign.
- Tax-Exempt Organizations. Show the name of the
organization and the signature of a principal officer or other person
authorized to sign, followed by his or her title.
- All Other Applicants. The application must show
the name of the company and the signature of the president, vice
president, treasurer, assistant treasurer, or chief accounting officer
(such as tax officer) authorized to sign, and their official title.
Receivers, trustees, or assignees must sign any application they are
required to file. For a subsidiary corporation filing a consolidated
return with its common parent, the form should be signed by an
authorized officer of the common parent corporation. For a CFC, the
form must be signed by the controlling U.S. shareholder(s).
- Preparer Other Than Applicant.
Note: The individual preparing the application must
also sign it.
The preparer cannot sign on behalf of the applicant. Unless you are
self-employed, show the name of the firm that employs you. If you file
on an applicant's behalf, include a power of attorney. Show any
specific acts the power of attorney grants, such as representation
before the IRS.
Specific Instructions
What To Complete
Also, corporations, S corporations, partnerships, controlled
foreign corporations, possession corporations, tax-exempt
organizations, estates, passive foreign investment companies, personal
service corporations, cooperatives, foreign personal holding
companies, and other foreign corporations must complete the specific
section(s) in Part III that applies to that particular entity.
- Continue -
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