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Instructions for Form 1128

Department of the Treasury

Internal Revenue Service

(Rev. December 2011)

(Use with the January 2008 revision of Form 1128)

Application To Adopt, Change, or Retain a Tax Year

year (except as provided above with

tax year by filing Form 8716, Election

Section references are to the Internal

respect to a controlling domestic

To Have a Tax Year Other Than a

Revenue Code unless otherwise noted.

General Instructions

shareholder that is a member of a

Required Tax Year.

•

consolidated group). See Regulations

A corporation electing to be treated

section 1.964-1(c)(5) for the definition

as an S corporation by filing Form

What’s New

of controlling domestic shareholders

2553, Election by a Small Business

of a CFC or 10/50 corporation.

Corporation, and requesting to

Future developments. The IRS has

change or retain its tax year.

If Form 1128 is filed on behalf of a

created a page on IRS.gov for

CFC or 10/50 corporation, each

information about Form 1128 and its

Individuals

controlling domestic shareholder

instructions at

Newly married individuals changing to

must attach to its tax return a copy of

Information about future

the tax year of the other spouse in

the form and all other domestic

developments affecting Form 1128

order to file a joint return (Regulations

shareholders must be provided a

(such as legislation enacted after we

section 1.442-1(d) must be followed).

written notice of the election. See

release it) will be posted on that

Regulations section 1.964-1(c)(3) for

page.

Exempt Organizations

details.

Purpose of Form

An organization exempt under

Exceptions

section 501(a) does not file Form

File Form 1128 to request a change

1128 unless the organization has

Do not file Form 1128 in the following

in tax year. Partnerships, S

changed its tax year at any time

circumstances.

corporations, personal service

within a 10-calendar-year period, and

corporations (PSCs), or trusts may be

Corporations

the organization has had an annual

required to file the form to adopt or

filing requirement during that 10-year

•

A corporation adopting its first tax

retain a certain tax year.

period (see Rev. Proc. 85-58, 1985-2

year.

C.B. 740). This exception does not

•

Who Must File

A corporation required to change

apply to organizations exempt from

its tax year to file a consolidated

Generally, all taxpayers must file

tax under section 521, 526, 527, or

return with its new common parent

Form 1128 to adopt, change, or retain

528; organizations described in

(see Regulations sections 1.442-1(c)

a tax year. However, see Exceptions

section 401(a); and organizations

and 1.1502-76(a)).

below.

involved in a group change in tax

•

A foreign sales corporation (FSC)

year for all its subordinate

The common parent of a

or an interest charge domestic

organizations.

consolidated group that files a

international sales corporation

consolidated return files one Form

(IC-DISC) changing to the tax year of

Trusts

1128 for the consolidated group. In

the U.S. shareholder with the highest

•

A trust (other than a tax-exempt

addition, the common parent

percentage of voting power (see

trust, charitable trust, or a grantor

corporation must (a) indicate that the

section 441(h)). Also see Temporary

trust under Rev. Rul. 90-55, 1990-2

Form 1128 is for the common parent

Regulations section 1.921-1T(b)(4).

C.B. 161) that adopts the calendar

corporation and all its subsidiaries

However, a FSC or IC-DISC must file

year as required by section 644.

and (b) answer all relevant questions

Form 1128 to change its tax year

•

Certain revocable trusts electing to

on the application for each member of

concurrently, if a tax year change has

be treated as part of an estate.

the consolidated group.

been made by the U.S. shareholder.

•

An employee plan or trust filing

If a consolidated group filing a

Partnerships, S

Form 5308, Request for Change in

consolidated return wants to change

Plan/Trust Year, to change its plan or

Corporations, and Personal

its tax year by using Rev. Proc.

trust year.

Service Corporations

2006-45, 2006-45 I.R.B. 851 at

www.

irs.gov/irb/2006-45_IRB/index.html

•

A newly formed partnership

When To File

(or its successor), every member of

adopting a required tax year or a

the group must meet the revenue

52-53 week tax year with reference to

Tax Year Adoption, Change,

procedure requirements.

such required tax year.

or Retention

•

If a controlled foreign corporation

A partnership, S corporation, or

•

(CFC) or 10/50 corporation

PSC terminating its section 444

To request a ruling to adopt,

(noncontrolled section 902

election (see Temporary Regulations

change, or retain a tax year, file Form

corporation) does not have a U.S.

section 1.444-1T(a)(5)).

1128 by the due date (not including

•

trade or business, then the CFC’s

A newly formed partnership, an

extensions) of the federal income tax

controlling domestic shareholder(s)

electing S corporation, or a newly

return for the first effective year. Do

must file Form 1128 on behalf of such

formed PSC that elects under section

not file earlier than the day following

foreign corporation to change its tax

444 a tax year other than the required

the end of the first effective year. In

Jan 09, 2012

Cat. No. 61752V

Instructions For Form 1128 - Application To Adopt, Change, Or Retain A Tax Year - 2011

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