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An organization described in

Do not file a tax return using

issue under consideration by the

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

the requested tax year until

Federal court. The applicant must

tax under section 501(a) unless the

this application is approved.

also provide a copy of the application

CAUTION

exemption is denied under section

to the government counsel at the

Rev. Proc. 2002-39 provides the

502 or 503.

same time it files the application with

general procedures for obtaining

the IRS National Office. The

Rev. Proc. 85-58 does not apply

approval to adopt, change, or retain a

application must contain the name

to:

tax year for taxpayers not qualifying

•

and telephone number of the

Farmers’ cooperatives exempt from

under the automatic approval rules or

government counsel.

federal income tax under section 521,

if the application is late.

•

Line 4a. Attach an explanation of

Organizations described in

Section A—General

the legal basis supporting the

sections 526, 527, and 528,

•

requested tax year. Include all

Organizations described in section

Information

authority (statutes, regulations, etc.)

401(a), and

All applicants must complete this

•

supporting the requested year. The

Organizations requesting a change

section to request a ruling on an

applicant is encouraged to include all

in a tax year on a group basis.

adoption of, change to, or retention of

relevant facts and circumstances that

A central organization should

a tax year.

may establish a business purpose.

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

Line 1. If the applicant is a

Line 4b. If the applicant requests to

group change in tax year for all its

partnership, S corporation, personal

establish a natural business year

subordinate organizations.

service corporation, or trust and any

under the annual business cycle test

Rev. Proc. 76-10 does not apply

of the following situations apply, the

or seasonal business test of sections

to:

applicable additional procedures

•

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

Farmers’ cooperatives exempt from

described below must be followed.

2002-39, it must provide its gross

•

federal income tax under section 521,

The applicant is under examination

receipts from sales or services and

•

Certain organizations that have

and has obtained the consent of the

approximate inventory costs (where

unrelated business taxable income

appropriate director to the change or

applicable) for each month in the

defined in section 512(a), and

retention of the applicant’s annual

requested short period and for each

•

Organizations that are private

accounting period. The applicant

month of the three immediately

foundations defined in section 509(a).

must attach to the application a

preceding tax years.

statement from the director

Line 10. If the answer to question 10

If the applicant is requesting to

consenting to the change or retention

is “Yes,” and the organization is a

change to a natural business year

of its annual accounting period. The

section 501(a) organization to which

that satisfies the 25-percent gross

applicant must also provide a copy of

section 3.03 of Rev. Proc. 85-58

receipts test described in section

the application to the director at the

applies or a central organization to

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

same time it files the application with

which Rev. Proc. 76-10 applies, sign

applicant must supply its gross

the IRS National Office. The

Form 1128 and see Part II—

receipts for the most recent 47

application must contain the name(s)

Automatic Approval Request above

months (or for any predecessor).

and telephone number(s) of the

under Where To File. Do not

Line 14. Applicants filing to request

examination agent(s).

complete Part III. If the answer to

•

an automatic approval for a change in

The applicant is before an appeals

question 10 is “Yes,” and Rev. Procs.

tax year under Rev. Procs. 2006-45,

(area) office and the applicant’s

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

annual accounting period is not an

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

Part III.

(Part II) are not required to pay a user

issue under consideration by the

Part III—Ruling Request

fee when Form 1128 is filed on time.

appeals (area) office. The applicant

must attach to the application a

Applicants filing to request a letter

Part III is completed only by

separate statement signed by the

ruling on a change in tax year under

applicants requesting to adopt,

appropriate person certifying that, to

Rev. Proc. 2007-1 and Rev. Proc.

change, or retain a tax year that

the best of that person’s knowledge,

2002-39 must pay a $1,500 user fee.

cannot use the automatic procedures

the entity’s annual accounting period

A request for an exempt organization

listed in Part II.

is not an issue under consideration by

letter ruling on a change in tax year

Also, the applicant must complete

the appeals (area) office. The

under Rev. Proc. 2007-8, 2007-1

the specific section(s) in Part III that

applicant must also provide a copy of

I.R.B. 230, requires payment of a

applies to that particular applicant.

the application to the appeals officer

$350 user fee.

at the same time it files the

If the applicant is:

Complete only

You can find Rev. Proc.

application with the IRS National

TIP

2007-1 and Rev. Proc. 2007-8

Office. The application must contain

A corporation (other

Sections A and

on pages 1 and 230,

the name and telephone number of

than an S corporation, B, plus any

respectively, of Internal Revenue

the appeals officer.

10/50 corporation, or

other applicable

•

Bulletin 2007-1 at

The applicant is before a Federal

CFC)

section in Part

irs-irbs/irb07-01.pdf.

court and the applicant’s annual

III

accounting period is not an issue

A separate $1,500 user fee is also

An S corporation

Sections A and

under consideration by the Federal

required for applicants filing a letter

court. The applicant must attach to

ruling request for an extension of time

the application a separate statement

to file under Regulations section

A partnership

Sections A and

signed by the appropriate person

301.9100-3 (including requests under

certifying that, to the best of that

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

A CFC or 10/50

Sections A and

person’s knowledge, the entity’s

2003-62 (Part II, Sections A, B, and

corporation

annual accounting period is not an

C)).

-7-

Instructions For Form 1128 - Application To Adopt, Change, Or Retain A Tax Year - Internal Revenue Service - 2008 Page 7

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