Instructions For Form 1128 (Rev. 2014) (Page 7 of 9) in pdf

Part III—Ruling Request

tax years), then it cannot establish a

the simplified method of either Rev.

natural business year under this

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

Part III is completed only by applicants

revenue procedure.

requesting to adopt, change, or retain

Under Rev. Proc. 85-58, an

d. If the requested tax year is a

a tax year that cannot use the

organization exempt under section

52-53-week tax year, the calendar

automatic procedures listed in Part II.

501(a) does not have to file Form

month ending nearest to the last day

1128 unless the following conditions

Also, the applicant must complete

of the 52-53-week tax year is treated

described in section 3.03 of Rev.

the specific section(s) in Part III that

as the last month of the requested tax

Proc. 85-58 apply:

applies to that particular applicant.

year for purposes of computing the

1. The organization was required

25-percent gross receipts test.

to file an annual information return or

Sections of Part III of Form 1128

Form 990-T, Exempt Organization

Line 7. For an S corporation, an

to Complete

Business Income Tax Return, at any

"ownership tax year" is the tax year

time during the last 10 calendar years;

other than a calendar year (if any)

If the applicant is:

Complete only

and

that, as of the first day of the first

A corporation (other than

Sections A and

effective year, constitutes the tax year

2. The organization has changed

an S corporation, 10/50

B, plus any other

of one or more shareholders

its tax year at any time within the last

corporation, or CFC)

applicable

(including any shareholder that

10 calendar years ending with the

section in Part III

concurrently changes to such tax

calendar year that includes the

An S corporation

Sections A and C

year) holding more than 50 percent of

beginning of the short period resulting

the corporation's issued and

A partnership

Sections A and D

from the change of tax year.

outstanding shares of stock. For this

A CFC or 10/50

Sections A and E

An organization described in

purpose, a shareholder that is

corporation

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

tax-exempt under section 501(a) is

tax under section 501(a) unless the

disregarded if such shareholder is not

exemption is denied under section

subject to tax on any income

Do not file a tax return using

502 or 503.

attributable to the S corporation.

the requested tax year until

Tax-exempt shareholders are not

this application is approved.

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

CAUTION

disregarded, however, if the S

Farmers' cooperatives exempt from

corporation is wholly-owned by such

Rev. Proc. 2002-39 provides the

federal income tax under section 521;

tax-exempt entities. A shareholder in

general procedures for obtaining

Organizations described in sections

an S corporation that wants to

approval to adopt, change, or retain a

526, 527, and 528;

concurrently change its tax year must

tax year for taxpayers not qualifying

Organizations described in section

follow the instructions generally

under the automatic approval rules or

401(a); and

applicable to taxpayers changing their

if the application is late.

Organizations requesting a change

tax years contained in Regulations

in a tax year on a group basis.

Section A—General Information

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

All applicants must complete this

2002-39, or any other applicable

A central organization should follow

section to request a ruling on an

administrative procedure published by

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

adoption of, change to, or retention of

the IRS.

change in tax year for all its

a tax year.

subordinate organizations.

Line 8. Answer “Yes” if the

Line 1. If the applicant is a

partnership is a related entity that

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

partnership, S corporation, personal

must concurrently change its tax year

Farmers' cooperatives exempt from

service corporation, or trust and any

as a term and condition of the

federal income tax under section 521,

of the following situations apply, the

approval of the taxpayer's request to

Certain organizations that have

applicable additional procedures

change its tax year.

unrelated business taxable income

described below must be followed.

Section C—Individuals

defined in section 512(a), and

The applicant is under examination

Organizations that are private

and has obtained the consent of the

Line 9. If the answer to this question

foundations defined in section 509(a).

appropriate director to the change or

is “Yes,” and the restrictions of section

retention of the applicant's annual

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

Line 10. If the answer to this question

accounting period. The applicant must

successor) do not apply, sign Form

is “Yes,” and the organization is a

attach to the application a statement

1128 and see Part II—Automatic

section 501(a) organization to which

from the director consenting to the

Approval Request above under

section 3.03 of Rev. Proc. 85-58

change or retention of its annual

Where To File. Do not complete Part

applies or a central organization to

accounting period. The applicant must

III. If the answer to this question is

which Rev. Proc. 76-10 applies, sign

also provide a copy of the application

“No,” go to Part III.

Form 1128 and see Part II—Automatic

to the director at the same time it files

Approval Request above under

Section D—Tax-Exempt

the application with the IRS National

Where To File. Do not complete Part

Organizations

Office. The application must contain

III.

the name(s) and telephone number(s)

A tax-exempt organization can

If the answer to this question is

of the examination agent(s).

request a change to its tax year under

“Yes,” and Rev. Proc. 85-58 and

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

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Instructions For Form 1128 (Rev. 2014) Page 7

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