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Instructions for Form 1128

Department of the Treasury

Internal Revenue Service

(Rev. April 2000)

Application To Adopt, Change, or Retain a Tax Year

Section references are to the Internal Revenue Code unless otherwise noted.

Privacy Act and Paperwork Reduction Act Notice. We ask for the information on this form to

A foreign sales corporation (FSC) or an

carry out the Internal Revenue laws of the United States. Section 442 says that you must obtain

interest-charge domestic international sales

IRS approval if you want to adopt, change, or retain a tax year. To obtain approval, you are

corporation (IC-DISC) changing to the tax year

required to file an application to adopt, change, or retain a tax year. Section 6109 requires that

of the U.S. shareholder with the highest

you disclose your taxpayer identification number (SSN or EIN). Routine uses of this information

percentage of voting power (see section

include giving it to the Department of Justice for civil and criminal litigation, and to cities, states,

441(h)).

and the District of Columbia for use in administering their tax laws. Failure to provide this

A specified foreign corporation (SFC) defined

information in a timely manner could result in approval of your application being delayed or

in section 898(b)(1) conforming its first taxable

withheld.

year beginning after July 10, 1989 to the

You are not required to provide the information requested on a form that is subject to the

required tax year, including an SFC that is

Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records

treated as a controlled foreign corporation

relating to a form or its instructions must be retained as long as their contents may become

(CFC) making the 1-month deferral election

material in the administration of any Internal Revenue law. Generally, tax returns and return

under section 898(c)(1)(B) as described in Rev.

information are confidential, as required by section 6103.

Proc. 90–26, 1990-1 C.B. 512.

The time needed to complete and file this form will vary depending on individual circumstances.

An SFC changing its tax year back to a

The estimated average times are:

previous tax year as described in Notice 95-13,

1995-1 C.B. 296.

Preparing

and sending

Partnerships, S Corporations, and

Learning about the

the form to

Personal Service Corporations

Recordkeeping

law or the form

the IRS

A corporation electing to be treated as an

Parts I and II

8 hr., 37 min.

6 hr., 34 min.

6 hr., 59 min.

S corporation and filing Form 2553, Election

Parts I and III

20 hr., 49 min.

5 hr., 26 min.

7 hr., 13 min.

by a Small Business Corporation.

A partnership, S corporation, or PSC

If you have comments concerning the accuracy of these time estimates or suggestions for

terminating a section 444 election (see

making this form simpler, we would be happy to hear from you. You can write to the Internal

Temporary Regulations section

Revenue Service, Western Area Distribution Center, Rancho Cordova, CA 95743-0001. DO NOT

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

send the tax form to this office. Instead, see Where To File on page 2.

A partnership, S corporation, or PSC that

intends to adopt, change to, or retain a required

General Instructions

tax year (usually a calendar year, see Rev.

1128 for the consolidated group. In addition,

Proc. 87-32, 1987-2 C.B. 396).

the common parent corporation must (a)

A partnership, S corporation, or PSC that

indicate that the Form 1128 is for the common

Purpose of Form

elects a tax year other than the required tax

parent corporation and all its subsidiaries, and

year by filing Form 8716, Election To Have A

(b) answer all relevant questions on the

File Form 1128 to request a change in tax year.

Tax Year Other Than a Required Tax Year.

application for each member of the

Partnerships, S corporations, or personal

consolidated group.

service corporations may be required to file the

52-53-Week Tax Year Taxpayers

If a consolidated group filing a consolidated

form to adopt or retain a certain tax year. For

A taxpayer, including a partnership, changing

return wants to change its tax year by using

more information, get Pub. 538, Accounting

to a 52-53-week tax year does not file Form

Rev. Proc. 2000-11, 2000-3 I.R.B. 309, every

Periods and Methods.

1128 if the 52-53-week year ends with

member of the group must meet the revenue

reference to the same calander month as its

procedure requirements.

Who Must File

previous tax year ended, and the taxpayer

Filers requesting a 52-53-week tax year —

keeps its books and computes its income on

Generally, the following taxpayers file Form

File Form 1128 to get prior approval of a

the new 52-53-week year.

1128, Individuals, partnerships, estates,

change to or from a 52-53-week tax year to any

tax-exempt organizations.

See Regulations section 1.441-2T(c)(2).

other tax year, including another 52-53-week

year.

Corporations, S corporations, personal

Individuals

service corporations, cooperatives, possession

For more information, see Temporary

corporations that have a section 936 or section

Regulations section 1.441-2T(c)(4),

Newly married individuals changing to the tax

30A election in effect, controlled foreign

Regulations section 1.1502-76(a)(1), and Pub.

year of the other spouse in order to file a joint

corporations, foreign personal holding

538.

return (Regulations section 1.442-1(e) must be

companies, foreign sales corporations or

followed).

However, if the applicant qualifies, these

interest-charge domestic international sales

changes may be made under the

Exempt Organizations

corporations, specified foreign corporations,

expeditious approval procedures under

CAUTION

passive foreign investment companies, other

An organization exempt under section 501(a)

Rev. Proc. 2000–11 discussed on page 3.

foreign corporations, and homeowners

does not file Form 1128 unless the organization

associations to change their tax years.

has changed its tax year at any time within a

Who Does Not File

In addition, the following taxpayers file Form

10-calendar-year period, and the organization

1128.

has had an annual filing requirement during

Taxpayers do not file Form 1128 in the

Partnerships and personal service

that 10-year period (see Rev. Proc. 85-58,

following circumstances.

corporations (PSCs) — To adopt a tax year

1985-2 C.B. 740). This exception does not

Corporations

apply to organizations exempt from tax under

other than a required tax year.

sections 521, 526, 527, or 528; organizations

Partnerships, S corporations, and PSCs —

A corporation that meets the terms of

described in section 401(a); and organizations

To retain a tax year other than a required tax

Regulations section 1.442-1(c) and files the

involved in a group change in tax year for all its

year. For example, a corporation that now

required statement with its tax return to change

subordinate organizations.

qualifies as a PSC must file Form 1128 if it

its tax year.

wants to retain its current fiscal year.

A subsidiary corporation required to change

Trusts

All filers — To correct an improper tax year

its tax year to file a consolidated return with its

as described in Rev. Proc. 85-15, 1985-1 C.B.

A trust (other than a tax-exempt trust or a

common parent (see Regulations sections

516.

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

1.442-1(d) and 1.1502-76(a)).

C.B. 161) that adopts the calendar year as

The common parent of a consolidated group

required by section 645.

that files a consolidated return files one Form

Cat. No. 61752V

Instructions For Form 1128 - Application To Adopt, Change, Or Retain A Tax Year - 2000

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