Instructions For Form 1128 (Rev. 2014)
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9Instructions for Form 1128
Department of the Treasury
Internal Revenue Service
(Rev. October 2014)
Application To Adopt, Change, or Retain a Tax Year
foreign corporation to change its tax
formed PSC that elects under section
Section references are to the Internal
Revenue Code unless otherwise noted.
year (except as provided above with
444 a tax year other than the required
respect to a controlling domestic
tax year by filing Form 8716, Election
General Instructions
shareholder that is a member of a
To Have a Tax Year Other Than a
consolidated group). See Regulations
Required Tax Year.
Future Developments
section 1.964-1(c)(5) for the definition
A corporation electing to be treated
of controlling domestic shareholders
For the latest information and
as an S corporation by filing Form
of a CFC or 10/50 corporation.
2553, Election by a Small Business
developments related to Form 1128
and its instructions, such as
Corporation, and requesting to
If Form 1128 is filed on behalf of a
change or retain its tax year.
legislation enacted after this form and
CFC or 10/50 corporation, each
its instructions were published, go to
Exempt Organizations
controlling domestic shareholder must
attach to its tax return a copy of the
An organization exempt under section
Purpose of Form
form and all other domestic
501(a) does not file Form 1128 unless
shareholders must be provided a
the organization has changed its tax
File Form 1128 to request a change in
written notice of the election. See
year at any time within a
tax year. Partnerships, S corporations,
Regulations section 1.964-1(c)(3) for
10-calendar-year period, and the
personal service corporations (PSCs),
details.
organization has had an annual filing
or trusts may be required to file Form
requirement during that 10-year
1128 to adopt or retain a certain tax
Exceptions
period (see Rev. Proc. 85-58, 1985-2
year.
C.B. 740). This exception does not
Do not file Form 1128 in the following
Part II is used for an automatic
apply to organizations exempt from
circumstances.
approval request. If the applicant does
tax under section 521, 526, 527, or
Corporations
not qualify for automatic approval,
528; organizations described in
Part III is used for a ruling request.
A corporation adopting its first tax
section 401(a); and organizations
year.
involved in a group change in tax year
Who Must File
A corporation required to change its
for all its subordinate organizations.
Generally, taxpayers must file Form
tax year to file a consolidated return
Individuals
1128 to adopt, change, or retain a tax
with its new common parent (see
Newly married individuals changing
year. However, see Exceptions below.
Regulations sections 1.442-1(c) and
to the tax year of the other spouse in
1.1502-76(a)).
The common parent of a
order to file a joint return (Regulations
A foreign sales corporation (FSC)
consolidated group that files a
section 1.442-1(d) must be followed).
or an interest charge domestic
consolidated return files one Form
An individual who does not have an
international sales corporation
1128 for the consolidated group. In
interest in a pass-through entity
(IC-DISC) changing to the tax year of
addition, the common parent
changing to a calendar year.
the U.S. shareholder with the highest
corporation must (a) indicate that the
percentage of voting power (see
Trusts
Form 1128 is for the common parent
section 441(h)). Also see Temporary
corporation and all its subsidiaries
A trust (other than a tax-exempt
Regulations section 1.921-1T(b)(4).
and (b) answer all relevant questions
trust, charitable trust, or a grantor trust
However, a FSC or IC-DISC must file
on the application for each member of
under Rev. Rul. 90-55, 1990-2 C.B.
Form 1128 to change its tax year
the consolidated group.
161) that adopts the calendar year as
concurrently, if a tax year change has
required by section 644.
If a consolidated group filing a
been made by the U.S. shareholder.
Certain revocable trusts electing to
consolidated return wants to change
Partnerships, S Corporations,
be treated as part of an estate.
its tax year by using Rev. Proc.
and Personal Service
An employee plan or trust filing
2006-45, 2006-45 I.R.B. 851 at
Corporations
Form 5308, Request for Change in
Plan/Trust Year, to change its plan or
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(or its successor), every
A newly formed partnership
trust year.
member of the group must meet the
adopting a required tax year or a
revenue procedure requirements.
52-53-week tax year with reference to
Estates
such required tax year.
If a controlled foreign corporation
An estate adopting its first tax year.
A partnership, S corporation, or
(CFC) or 10/50 corporation
PSC terminating its section 444
(noncontrolled section 902
election (see Temporary Regulations
corporation) does not have a U.S.
section 1.444-1T(a)(5)).
trade or business, then the CFC's
A newly formed partnership, an
controlling domestic shareholder(s)
electing S corporation, or a newly
must file Form 1128 on behalf of such
Oct 27, 2014
Cat. No. 61752V
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