Instructions For Form 1128 - Application To Adopt, Change, Or Retain A Tax Year (Page 2 of 9) in pdf

Estates

2. Granting relief will not prejudice

must file Form 1128 with its tax return

the interests of the government.

for its tax year with or within which

An estate adopting its first tax year.

ends the first effective year of the CFC

Applications that are filed more

When To File

or the 10/50 corporation. The other

than 90 days after the due date are

controlling domestic shareholder(s)

presumed to jeopardize the interests

Tax Year Adoption, Change, or

must attach a copy of the form to its

of the government, and will be

Retention

income tax return for its tax year with

approved only in unusual and

or within which ends the tax year of

To request a ruling to adopt,

compelling circumstances.

the CFC or 10/50 corporation.

change, or retain a tax year, file Form

Under either circumstance, an

1128 by the due date (not including

Note. If a corporation is required to

extension request must be filed under

extensions) of the federal income tax

file Form 1128 with its tax return and

Regulations section 301.9100-3 and

return for the first effective year. Do

is a member of an affiliated group of

is a ruling request under Rev. Proc.

not file earlier than the day following

corporations filing a consolidated

2017-1, I.R.B. 1 at

the end of the first effective year. In

return, the common parent must file

2017-1_IRB/ar07.html

(updated

the case of a change in tax year, the

the Form 1128 with the consolidated

annually). The extension is also

first effective year is the short period

return.

subject to public inspection under

required to effect the change.

section 6110.

Applications prior to an election to

To request automatic approval to

become an S corporation. If a

change a tax year under Rev. Proc.

See section 7 of Rev. Proc. 2017-1

corporation is requesting to change its

2006-45 (Form 1128, Part II,

for information on requesting a ruling.

tax year prior to making an election to

Section A) or Rev. Proc. 2006-46,

become an S corporation and the

2006-45 I.R.B. 859 at

Note. An extension request under

requested tax year is a permitted tax

2006-45_IRB/index.html

(Form 1128,

Rev. Proc. 2017-1 (or its successor)

year for S corporations (for example,

Part II, Section B), file by the due date

requires payment of a user fee.

a calendar tax year), file Form 1128

of the return (including extensions) for

Early Applications

as an attachment to Form 2553. See

the short period required to effect the

Form 1128, Part II, line 2. Do not file

change. A Form 1128 filed by a

Generally, an application to adopt or

Form 1128 with the above address for

controlling domestic shareholder (or

change a tax year will not be

automatic approval requests. For

its common parent) on behalf of a

considered if it is submitted before the

information on where to file Form

CFC or 10/50 corporation is due no

end of the short period.

2553, see the Instructions for Form

later than the due date (including

2553.

Where To File

extensions) of that shareholder's (or

its common parent's) income tax

Part III—Ruling Request

Part II—Automatic Approval

return for its tax year with or within

If Part III (ruling request) applies to the

Request

which ends the first effective year of

applicant, file Form 1128 and the

the CFC or 10/50 corporation.

If Part II (automatic approval request)

appropriate user fee with the IRS

For an individual filing to change to

applies to the applicant, file Form

National Office. Mail Form 1128 to:

a calendar year under Rev. Proc.

1128 with:

2003-62, 2003-32 I.R.B. 299 at

Internal Revenue Service

2003-32_IRB/

Internal Revenue Service Center

Associate Chief Counsel (Income

index.html

(Form 1128, Part II,

Attention: Entity Control

Tax and Accounting)

Section C), Form 1128 must be filed

Attention: CC:PA:LPD:DRU

on or before the due date (including

Use the address where the applicant's

P.O. Box 7604

extensions) for filing the federal

income tax return is filed. See the

Ben Franklin Station

income tax return for the short period

instructions for the applicant's income

Washington, DC 20044-7604

required to effect the change.

tax return. The applicant must also

To change a tax year under Rev.

attach a copy of Form 1128 to the

The IRS will acknowledge receipt

Proc. 85-58 (Form 1128, Part II,

federal income tax return filed for the

of the application within 45 days. You

Section D), file by the 15th day of the

short period required to effect the

can inquire about the status of the

5th calendar month after the end of

change.

application by writing to:

the short period.

Do not file a request for

Control Clerk, CC:ITA

automatic approval with either

Late Applications

Internal Revenue Service

address below in Part

Generally, an application filed after

CAUTION

Room 4516

III—Ruling Request. Doing so will

the appropriate due date stated above

1111 Constitution Ave., NW

result in a significant delay in the

is considered late.

Washington, DC 20224-0002

processing of your request.

However, applications filed within

The applicant will receive

CFCs and 10/50 corporations. If

90 days after the due date may be

notification of its approval or denial. If

the form is filed on behalf of a CFC or

considered as timely filed when the

no communication is received from

10/50 corporation, the controlling

applicant establishes that:

the IRS regarding the application

domestic shareholder who retains the

1. The taxpayer acted reasonably

within 90 days, contact the Control

jointly executed consent described in

and in good faith, and

Clerk.

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

-2-

Instructions For Form 1128 - Application To Adopt, Change, Or Retain A Tax Year Page 2

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