Instructions For Form 1128 (Rev. January 2006) (Page 6 of 8) in pdf

outstanding shares of stock. For this

Rev. Proc. 85-58 does not apply

Do not file a tax return using

purpose, a shareholder that is

to:

the requested tax year until

•

tax-exempt under section 501(a) is

this application is approved.

Farmers’ cooperatives exempt from

CAUTION

disregarded if such shareholder is not

Federal income tax under section

Rev. Proc. 2002-39 provides the

subject to tax on any income

521,

general procedures for obtaining

•

attributable to the S corporation.

Organizations described in

approval to adopt, change, or retain a

Tax-exempt shareholders are not

sections 526, 527, and 528,

tax year for taxpayers not qualifying

•

disregarded, however, if the S

Organizations described in section

under the automatic approval rules or

corporation is wholly-owned by such

401(a), and

if the application is late.

•

tax-exempt entities. A shareholder in

Organizations requesting a change

an S corporation that wants to

Section A—General

in a tax year on a group basis.

concurrently change its tax year must

Information

follow the instructions generally

A central organization should

All applicants must complete this

applicable to taxpayers changing their

follow Rev. Proc. 76-10 to apply for a

section to request a ruling on an

group change in tax year for all its

tax years contained in Regulations

adoption of, change to, or retention of

section 1.442-1(b), Rev. Proc.

subordinate organizations.

a tax year.

2002-39, or any other applicable

Rev. Proc. 76-10 does not apply

administrative procedure published

Line 1. If the applicant is a

to:

by the IRS.

partnership, S corporation, electing S

•

Farmers’ cooperatives exempt from

corporation, or PSC and any of the

Line 8. Answer “Yes” if the

Federal income tax under section

following situations apply, the

partnership is a related entity that

521,

applicable additional procedures

must concurrently change its tax year

•

Certain organizations that have

described below must be followed.

as a term and condition of the

•

unrelated business taxable income

The applicant is under examination

approval of the taxpayer’s request to

defined in section 512(a), and

and has obtained the consent of the

change its tax year.

•

Organizations that are private

appropriate director to the change or

Section C—Individuals

foundations defined in section 509(a).

retention of the applicant’s annual

accounting period. The applicant

Line 9. If the answer to question 9 is

Line 10. If the answer to question 10

must attach to the application a

“Yes,” and the restrictions of section

is “Yes,” and the organization is a

statement from the director

4.02 of Rev. Proc. 2003-62 (or its

section 501(a) organization to which

consenting to the change or retention

successor) do not apply, sign Form

section 3.03 of Rev. Proc. 85-58

of its annual accounting period. The

1128 and see Part II — Automatic

applies or a central organization to

applicant must also provide a copy of

Approval Request above under

which Rev. Proc. 76-10 applies, sign

the application to the director at the

Where To File. Do not complete Part

Form 1128 and see Part II —

same time it files the application with

III. If the answer to question 9 is

Automatic Approval Request above

the IRS National Office. The

“No,” go to Section A of Part III.

under Where To File. Do not

application must contain the name(s)

complete Part III. If the answer to

and telephone number(s) of the

Section D—Tax-Exempt

question 10 is “Yes,” and Rev. Procs.

examination agent(s).

Organizations

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

•

The applicant is before an appeals

Part III.

A tax-exempt organization can

(area) office and the applicant’s

request a change to its tax year under

annual accounting period is not an

Part III—Ruling Request

the simplified method of either Rev.

issue under consideration by the

Proc. 85-58 or Rev. Proc. 76-10.

appeals (area) office. The applicant

Part III is completed only by

Under Rev. Proc. 85-58, an

must attach to the application a

applicants requesting to adopt,

organization exempt under section

separate statement signed by the

change, or retain a tax year that

501(a) does not have to file Form

appropriate person certifying that, to

cannot use the automatic procedures

1128 unless the following conditions

the best of that person’s knowledge,

listed in Part II.

described in section 3.03 of Rev.

the entity’s annual accounting period

Also, the applicant must complete

Proc. 85-58 apply:

is not an issue under consideration by

the specific section(s) in Part III that

the appeals (area) office. The

1. The organization was required

applies to that particular applicant.

applicant must also provide a copy of

to file an annual information return or

the application to the appeals officer

Form 990-T, Exempt Organization

Complete

at the same time it files the

Business Income Tax Return, at any

If the applicant is:

only

application with the IRS National

time during the last 10 calendar

Office. The application must contain

years, and

A corporation (other

Sections A and

the name and telephone number of

than an S corporation B, plus any

2. The organization has changed

the appeals officer.

or CFC)

other applicable

its tax year at any time within the last

•

The applicant is before a Federal

section in Part

10 calendar years ending with the

court and the applicant’s annual

III

calendar year that includes the

accounting period is not an issue

beginning of the short period resulting

An S corporation

Sections A and

under consideration by the Federal

from the change of tax year.

court. The applicant must attach to

An organization described in

the application a separate statement

A Partnership

Sections A and

section 501(c) or (d) is exempt from

signed by the appropriate person

tax under section 501(a) unless the

certifying that, to the best of that

A Controlled Foreign

Sections A and

exemption is denied under section

person’s knowledge, the entity’s

Corporation

502 or 503.

annual accounting period is not an

-6-

Instructions For Form 1128 (Rev. January 2006) Page 6

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