Instructions For Form 1128 - Application To Adopt, Change, Or Retain A Tax Year (Page 7 of 9) in pdf

that, as of the first day of the first

2. The organization has changed

Sections of Part III of Form 1128

effective year, constitutes the tax year

its tax year at any time within the last

to Complete

of one or more shareholders

10 calendar years ending with the

(including any shareholder that

calendar year that includes the

concurrently changes to such tax

beginning of the short period resulting

If the applicant is:

Complete only:

year) holding more than 50 percent of

from the change of tax year.

A corporation (other than

Sections A and

the corporation's issued and

an S corporation, 10/50

B, plus any other

An organization described in

outstanding shares of stock. For this

corporation, or CFC)

applicable

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

purpose, a shareholder that is

section in Part III

tax under section 501(a) unless the

tax-exempt under section 501(a) is

An S corporation

Sections A and C

exemption is denied under section

disregarded if such shareholder is not

502 or 503.

A partnership

Sections A and D

subject to tax on any income

attributable to the S corporation.

An Estate

Sections A and G

Rev. Proc. 85-58 does not apply to:

Tax-exempt shareholders are not

Farmers' cooperatives exempt from

An individual

Section A

disregarded, however, if the S

federal income tax under section 521;

A CFC or 10/50

Sections A and E

corporation is wholly owned by such

Organizations described in sections

corporation

tax-exempt entities. A shareholder in

526, 527, and 528;

an S corporation that wants to

Organizations described in section

concurrently change its tax year must

401(a); and

Do not file a tax return using

follow the instructions generally

Organizations requesting a change

the requested tax year until

applicable to taxpayers changing their

in a tax year on a group basis.

this application is approved.

tax years contained in Regulations

CAUTION

A central organization should follow

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

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

Rev. Proc. 2002-39 provides the

2002-39, or any other applicable

change in tax year for all its

general procedures for obtaining

administrative procedure published by

subordinate organizations.

approval to adopt, change, or retain a

the IRS.

tax year for taxpayers not qualifying

Rev. Proc. 76-10 does not apply to:

Line 8. Answer “Yes” if the

under the automatic approval rules or

Farmers' cooperatives exempt from

partnership is a related entity that

if the application is late.

federal income tax under section 521,

must concurrently change its tax year

Section A—General Information

Certain organizations that have

as a term and condition of the

unrelated business taxable income

All applicants must complete this

approval of the taxpayer's request to

defined in section 512(a), and

section to request a ruling on an

change its tax year.

Organizations that are private

adoption of, change to, or retention of

Section C—Individuals

foundations defined in section 509(a).

a tax year.

Line 9. If the answer to this question

Line 10. If the answer to this question

Line 1. If the applicant is a

is “Yes,” and the restrictions of section

is “Yes,” and the organization is a

partnership, S corporation, personal

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

section 501(a) organization to which

service corporation, or trust and any

successor) do not apply, sign Form

section 3.03 of Rev. Proc. 85-58

of the following situations apply, the

1128 and see Part II—Automatic

applies or a central organization to

applicable additional procedures

Approval Request earlier under

which Rev. Proc. 76-10 applies, sign

described below must be followed.

Where To

File. Do not complete Part

Form 1128 and see Part II—Automatic

The applicant is under examination

III. If the answer to this question is

Approval Request earlier under

and has obtained the consent of the

“No,” go to Part III.

Where To

File. Do not complete Part

appropriate director to the change or

III.

retention of the applicant's annual

Section D—Tax-Exempt

accounting period. The applicant must

If the answer to this question is

Organizations

“Yes,” and Rev. Proc. 85-58 and

attach to the application a statement

A tax-exempt organization can

76-10 do not apply, go to Part III.

from the director consenting to the

request a change to its tax year under

change or retention of its annual

Part III—Ruling Request

the simplified method of either Rev.

accounting period. The applicant must

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

also provide a copy of the application

Part III is completed only by applicants

to the director at the same time it files

requesting to adopt, change, or retain

Under Rev. Proc. 85-58, an

the application with the IRS National

a tax year that cannot use the

organization exempt under section

Office. The application must contain

automatic procedures listed in Part II.

501(a) does not have to file Form

the name(s) and telephone number(s)

1128 unless the following conditions

Also, the applicant must complete

of the examination agent(s).

described in section 3.03 of Rev.

the specific section(s) in Part III that

The applicant is before an appeals

Proc. 85-58 apply.

applies to that particular applicant.

office and the applicant's annual

1. The organization was required

accounting period is not an issue

to file an annual information return or

under consideration by the appeals

Form 990-T, Exempt Organization

office. The applicant must attach to

Business Income Tax Return, at any

the application a separate statement

time during the last 10 calendar years;

signed by the appropriate person

and

certifying that, to the best of that

-7-

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

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