What is Form 1128
Form 1128 is an application that allows businesses to adopt, change, or retain their tax year, ensuring tax periods align with operational and financial needs.
Who Can File Form 1128?
- Eligible Taxpayers:
- C Corporations
- Partnerships
- S Corporations
- Personal Service Corporations
- Trusts
Purpose of Filing
- To align the tax year with business or operational needs.
- To seek approval for changing an accounting period.
Timeline for Filing
- Adopting/Changing/Retaining a Tax Year: File by the due date of the federal income tax return for the first effective year.
- Automatic Approval Requests to change a tax year: File by the due date of the return (including extensions) for the short period required to effect the change.
- A controlling domestic shareholder (or its common parent) can file Form 1128 on behalf of a Controlled Foreign Corporation (CFC).
Late & Early Applications
Late Applications:
- An application filed after the appropriate due date is considered late, applications within 90 days of the due date may still be considered timely with proper reasoning.
Early Applications:
- File early, but no later than the 15th day of the second calendar month after the short period ends.
Where to File Form 1128
- Automatic Approval Requests:
File directly with the IRS. - Before S Corporation Election:
If a corporation wants to change its tax year before electing to become an S corporation, file Form 1128 as an attachment to Form 2553, ensuring the requested tax year is permitted for S corporations.
Mode of Filing:
Mail to the appropriate address (varies for automatic and general approvals).
Need help with Form 1128?
Changing or adopting a tax year can be a complex process, but it doesn’t have to be.
Whether you're filing for a C corporation, S corporation, partnership, or trust, FinStackk’s team of experts ensures your Form 1128 application is accurate, compliant, and stress-free.
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