Instructions For Form 1128 - Application To Adopt, Change, Or Retain A Tax Year printable pdf download

Instructions for Form 1128

Department of the Treasury

Internal Revenue Service

(Rev. November 2017)

(Use with the October 2014 revision of Form 1128)

Application To Adopt, Change, or Retain a Tax Year

trade or business, then the CFC's

A partnership, S corporation, or

Section references are to the Internal

Revenue Code unless otherwise noted.

controlling domestic shareholder(s)

PSC terminating its section 444

must file Form 1128 on behalf of such

election (see Temporary Regulations

General Instructions

foreign corporation to change its tax

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

year (except as provided above with

A newly formed partnership, an

Future Developments

respect to a controlling domestic

electing S corporation, or a newly

shareholder that is a member of a

formed PSC that elects under section

For the latest information and

consolidated group). See Regulations

444 a tax year other than the required

developments related to Form 1128

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

tax year by filing Form 8716, Election

and its instructions, such as

of controlling domestic shareholders

To Have a Tax Year Other Than a

legislation enacted after this form and

of a CFC or 10/50 corporation.

Required Tax Year.

its instructions were published, go to

A corporation electing to be treated

IRS.gov/Form1128.

If Form 1128 is filed on behalf of a

as an S corporation by filing Form

CFC or 10/50 corporation, each

Purpose of Form

2553, Election by a Small Business

controlling domestic shareholder must

Corporation, and requesting to

File Form 1128 to request a change in

attach to its tax return a copy of the

change or retain its tax year.

tax year. Partnerships, S corporations,

form and all other domestic

personal service corporations (PSCs),

Exempt Organizations

shareholders must be provided a

or trusts may be required to file Form

written notice of the election. See

An organization exempt under section

1128 to adopt or retain a certain tax

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

501(a) does not file Form 1128 unless

year.

details.

the organization has changed its tax

Part II is used for an automatic

year at any time within a

Exceptions

approval request. If the applicant does

10-calendar-year period, and the

Do not file Form 1128 in the following

not qualify for automatic approval,

organization has had an annual filing

circumstances.

Part III is used for a ruling request.

requirement during that 10-year

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

Corporations

Who Must File

C.B. 740). This exception does not

A corporation adopting its first tax

apply to organizations exempt from

Generally, taxpayers must file Form

year.

tax under section 521, 526, 527, or

1128 to adopt, change, or retain a tax

A corporation required to change its

528; organizations described in

year. However, see Exceptions, later.

tax year to file a consolidated return

section 401(a); and organizations

with its new common parent (see

The common parent of a

involved in a group change in tax year

consolidated group that files a

Regulations sections 1.442-1(c) and

for all its subordinate organizations.

1.1502-76(a)).

consolidated return files one Form

Individuals

1128 for the consolidated group. In

A foreign sales corporation (FSC)

or an interest charge domestic

addition, the common parent

Newly married individuals changing to

corporation must (a) indicate that the

international sales corporation

the tax year of the other spouse in

(IC-DISC) changing to the tax year of

Form 1128 is for the common parent

order to file a joint return do not file

corporation and all its subsidiaries

the U.S. shareholder with the highest

Form 1128. Regulations section

percentage of voting power (see

and (b) answer all relevant questions

1.442-1(d) must be followed.

on the application for each member of

section 441(h)). Also see Temporary

Trusts

the consolidated group.

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

A trust (other than a tax-exempt

However, a FSC or IC-DISC must file

If a consolidated group filing a

trust, charitable trust, or a grantor trust

Form 1128 to change its tax year

consolidated return wants to change

under Rev. Rul. 90-55, 1990-2 C.B.

concurrently, if a tax year change has

its tax year by using Rev. Proc.

161) that adopts the calendar year as

been made by the U.S. shareholder.

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

required by section 644.

Partnerships, S Corporations,

Certain revocable trusts electing to

index.html

(or its successor), every

and Personal Service

be treated as part of an estate.

member of the group must meet the

Corporations

An employee plan or trust filing

revenue procedure requirements.

Form 5308, Request for Change in

A newly formed partnership

Plan/Trust Year, to change its plan or

adopting a required tax year or a

If a controlled foreign corporation

trust year.

(CFC) or 10/50 corporation

52-53-week tax year with reference to

such required tax year.

(noncontrolled section 902

corporation) does not have a U.S.

Oct 24, 2017

Cat. No. 61752V

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

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