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•

Certain organizations that have

Line 1. If the applicant is a

Line 4b. If the applicant requests to

unrelated business taxable income

partnership, S corporation, personal

establish a natural business year

defined in section 512(a), and

service corporation, or trust and any

under the annual business cycle test

•

Organizations that are private

of the following situations apply, the

or seasonal business test of sections

foundations defined in section 509(a).

applicable additional procedures

5.03(1) and 5.03(2) of Rev. Proc.

described below must be followed.

2002-39, it must provide its gross

Line 10. If the answer to question 10

•

receipts from sales or services and

The applicant is under examination

is “Yes,” and the organization is a

approximate inventory costs (where

and has obtained the consent of the

section 501(a) organization to which

applicable) for each month in the

appropriate director to the change or

section 3.03 of Rev. Proc. 85-58

retention of the applicant’s annual

requested short period and for each

applies or a central organization to

accounting period. The applicant

month of the three immediately

which Rev. Proc. 76-10 applies, sign

must attach to the application a

preceding tax years.

Form 1128 and see Part

statement from the director

II—Automatic Approval Request

If the applicant is requesting to

consenting to the change or retention

above under Where To File. Do not

change to a natural business year

of its annual accounting period. The

complete Part III. If the answer to

that satisfies the 25-percent gross

applicant must also provide a copy of

question 10 is “Yes,” and Rev. Proc.

the application to the director at the

receipts test described in section

85-58 and 76-10 do not apply, go to

same time it files the application with

Part III.

5.03(3) of Rev. Proc. 2002-39, the

the IRS National Office. The

applicant must supply its gross

Part III—Ruling Request

application must contain the name(s)

receipts for the most recent 47

and telephone number(s) of the

months (or for any predecessor).

Note. All references to Revenue

examination agent(s).

Procedures are to that Revenue

Line 14. Applicants filing to request

•

The applicant is before an appeals

Procedure or its successor.

an automatic approval for a change in

(area) office and the applicant’s

tax year under Rev. Procs. 2006-45,

Part III is completed only by

annual accounting period is not an

2006-46, 2003-62, 85-58, or 76-10

applicants requesting to adopt,

issue under consideration by the

(Form 1128, Part II) are not required

change, or retain a tax year that

appeals (area) office. The applicant

to pay a user fee when Form 1128 is

cannot use the automatic procedures

must attach to the application a

listed in Part II.

filed on time.

separate statement signed by the

appropriate person certifying that, to

Also, the applicant must complete

Applicants filing to request a letter

the best of that person’s knowledge,

the specific section(s) in Part III that

ruling on a change in tax year under

the entity’s annual accounting period

applies to that particular applicant.

Rev. Proc. 2011-1 (updated annually)

is not an issue under consideration by

Sections of Part III of Form 1128

and Rev. Proc. 2002-39 must pay a

the appeals (area) office. The

user fee. A request for an exempt

to Complete

applicant must also provide a copy of

organization letter ruling on a change

the application to the appeals officer

in tax year under Rev. Proc. 2011-8,

at the same time it files the

If the applicant is:

Complete only

2011-1 I.R.B. 237 at

application with the IRS National

2011-01_IRB/index.html, also

Office. The application must contain

A corporation (other

Sections A and

requires payment of a user fee.

the name and telephone number of

than an S corporation, B, plus any

the appeals officer.

10/50 corporation, or

other applicable

A separate user fee is also

CFC)

section in Part

•

The applicant is before a Federal

required for applicants filing a letter

III

court and the applicant’s annual

ruling request for an extension of time

accounting period is not an issue

An S corporation

Sections A and

to file under Regulations section

under consideration by the Federal

301.9100-3 (including requests under

court. The applicant must attach to

Rev. Procs. 2006-45, 2006-46, and

A partnership

Sections A and

the application a separate statement

2003-62 (Form 1128, Part II, Sections

signed by the appropriate person

A, B, and C)).

certifying that, to the best of that

A CFC or 10/50

Sections A and

person’s knowledge, the entity’s

corporation

Note. The user fees referred to in

annual accounting period is not an

the above paragraphs are published

issue under consideration by the

in Rev. Proc. 2011-1 (exempt

Do not file a tax return using

Federal court. The applicant must

organizations, see Rev. Proc.

the requested tax year until

also provide a copy of the application

2011-8), or an annual update. The

this application is approved.

to the government counsel at the

CAUTION

annual updates are published as

same time it files the application with

Rev. Proc. 2002-39 provides the

revenue procedures in the Internal

the IRS National Office. The

general procedures for obtaining

Revenue Bulletin. The Internal

application must contain the name

approval to adopt, change, or retain a

Revenue Bulletins can be accessed

and telephone number of the

tax year for taxpayers not qualifying

at The fees for 2011

government counsel.

under the automatic approval rules or

are in Internal Revenue Bulletin

if the application is late.

2011-1.

Line 4a. Attach an explanation of

the legal basis supporting the

Section A—General

Payment of the user fee (check or

requested tax year. Include all

Information

money order made payable to the

authority (statutes, regulations, etc.)

Internal Revenue Service) must be

All applicants must complete this

supporting the requested year. The

attached to Form 1128 at the time the

section to request a ruling on an

applicant is encouraged to include all

form is filed. See Rev. Proc. 2011-1

adoption of, change to, or retention of

relevant facts and circumstances that

for more information.

a tax year.

may establish a business purpose.

-7-

Instructions For Form 1128 - Application To Adopt, Change, Or Retain A Tax Year - 2011 Page 7

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