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Department of the Treasury Instructions for Form 1128 Internal Revenue Service (Rev. November 2017) (Use with the October 2014 revision of Form 1128) Application To Adopt, Change, or Retain a Tax Year

Section references are to the Internal trade or business, then the CFC's A partnership, S corporation, or Revenue Code unless otherwise noted. controlling domestic shareholder(s) PSC terminating its section 444 must file Form 1128 on behalf of such election (see Temporary Regulations General Instructions foreign corporation to change its tax section 1.444-1T(a)(5)). year (except as provided above with A newly formed partnership, an Future Developments respect to a controlling domestic electing S corporation, or a newly For the latest information and shareholder that is a member of a formed PSC that elects under section developments related to Form 1128 consolidated group). See Regulations 444 a tax year other than the required and its instructions, such as section 1.964-1(c)(5) for the definition tax year by filing Form 8716, Election legislation enacted after this form and of controlling domestic shareholders To Have a Tax Year Other Than a its instructions were published, go to of a CFC or 10/50 corporation. Required Tax Year. IRS.gov/Form1128. A corporation electing to be treated If Form 1128 is filed on behalf of a as an S corporation by filing Form CFC or 10/50 corporation, each 2553, Election by a Small Business Purpose of Form controlling domestic shareholder must Corporation, and requesting to File Form 1128 to request a change in attach to its tax return a copy of the change or retain its tax year. tax year. Partnerships, S corporations, form and all other domestic personal service corporations (PSCs), shareholders must be provided a Exempt Organizations or trusts may be required to file Form written notice of the election. See An organization exempt under section 1128 to adopt or retain a certain tax Regulations section 1.964-1(c)(3) for year. 501(a) does not file Form 1128 unless details. the organization has changed its tax Part II is used for an automatic year at any time within a approval request. If the applicant does Exceptions 10-calendar-year period, and the not qualify for automatic approval, Do not file Form 1128 in the following organization has had an annual filing Part III is used for a ruling request. circumstances. requirement during that 10-year Corporations period (see Rev. Proc. 85-58, 1985-2 Who Must File C.B. 740). This exception does not A corporation adopting its first tax Generally, taxpayers must file Form apply to organizations exempt from year. 1128 to adopt, change, or retain a tax tax under section 521, 526, 527, or A corporation required to change its year. However, see Exceptions, later. 528; organizations described in tax year to file a consolidated return section 401(a); and organizations The common parent of a with its new common parent (see involved in a group change in tax year consolidated group that files a Regulations sections 1.442-1(c) and for all its subordinate organizations. consolidated return files one Form 1.1502-76(a)). 1128 for the consolidated group. In A foreign sales corporation (FSC) Individuals addition, the common parent or an interest charge domestic Newly married individuals changing to corporation must (a) indicate that the international sales corporation the tax year of the other spouse in Form 1128 is for the common parent (IC-DISC) changing to the tax year of order to file a joint return do not file corporation and all its subsidiaries the U.S. shareholder with the highest Form 1128. Regulations section and (b) answer all relevant questions percentage of voting power (see 1.442-1(d) must be followed. on the application for each member of section 441(h)). Also see Temporary the consolidated group. Regulations section 1.921-1T(b)(4). Trusts However, a FSC or IC-DISC must file A trust (other than a tax-exempt If a consolidated group filing a Form 1128 to change its tax year trust, charitable trust, or a grantor trust consolidated return wants to change concurrently, if a tax year change has under Rev. Rul. 90-55, 1990-2 C.B. its tax year by using Rev. Proc. been made by the U.S. shareholder. 161) that adopts the calendar year as 2006-45, 2006-45 I.R.B. 851 at required by section 644. www.irs.gov/irb/2006-45_IRB/ Partnerships, S Corporations, Certain revocable trusts electing to index.html (or its successor), every and Personal Service be treated as part of an estate. member of the group must meet the Corporations An employee plan or trust filing revenue procedure requirements. A newly formed partnership Form 5308, Request for Change in If a controlled foreign corporation adopting a required tax year or a Plan/Trust Year, to change its plan or (CFC) or 10/50 corporation 52-53-week tax year with reference to trust year. (noncontrolled section 902 such required tax year. corporation) does not have a U.S.

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Estates 2. Granting relief will not prejudice must file Form 1128 with its tax return An estate adopting its first tax year. the interests of the government. for its tax year with or within which ends the first effective year of the CFC Applications that are filed more or the 10/50 corporation. The other When To File 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 income tax return for its tax year with Retention approved only in unusual and or within which ends the tax year of To request a ruling to adopt, compelling circumstances. change, or retain a tax year, file Form the CFC or 10/50 corporation. 1128 by the due date (not including Under either circumstance, an Note. If a corporation is required to extensions) of the federal income tax extension request must be filed under file Form 1128 with its tax return and return for the first effective year. Do Regulations section 301.9100-3 and is a member of an affiliated group of not file earlier than the day following is a ruling request under Rev. Proc. corporations filing a consolidated the end of the first effective year. In 2017-1, I.R.B. 1 at www.irs.gov/irb/ return, the common parent must file the case of a change in tax year, the 2017-1_IRB/ar07.html (updated the Form 1128 with the consolidated first effective year is the short period annually). The extension is also return. required to effect the change. subject to public inspection under To request automatic approval to section 6110. Applications prior to an election to change a tax year under Rev. Proc. See section 7 of Rev. Proc. 2017-1 become an S corporation. If a 2006-45 (Form 1128, Part II, for information on requesting a ruling. corporation is requesting to change its Section A) or Rev. Proc. 2006-46, tax year prior to making an election to 2006-45 I.R.B. 859 at www.irs.gov/irb/ Note. An extension request under become an S corporation and the 2006-45_IRB/index.html (Form 1128, Rev. Proc. 2017-1 (or its successor) requested tax year is a permitted tax Part II, Section B), file by the due date requires payment of a user fee. year for S corporations (for example, of the return (including extensions) for a calendar tax year), file Form 1128 the short period required to effect the Early Applications as an attachment to Form 2553. See change. A Form 1128 filed by a Generally, an application to adopt or Form 1128, Part II, line 2. Do not file controlling domestic shareholder (or change a tax year will not be Form 1128 with the above address for its common parent) on behalf of a considered if it is submitted before the automatic approval requests. For CFC or 10/50 corporation is due no end of the short period. information on where to file Form later than the due date (including 2553, see the Instructions for Form extensions) of that shareholder's (or Where To File 2553. its common parent's) income tax Part III—Ruling Request return for its tax year with or within Part II—Automatic Approval which ends the first effective year of Request If Part III (ruling request) applies to the applicant, file Form 1128 and the the CFC or 10/50 corporation. If Part II (automatic approval request) For an individual filing to change to appropriate user fee with the IRS 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 www.irs.gov/irb/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 Section D), file by the 15th day of the of the application within 45 days. You short period required to effect the can inquire about the status of the 5th calendar month after the end of change. the short period. application by writing to: Do not file a request for Late Applications ! automatic approval with either Control Clerk, CC:ITA CAUTION address below in Part Internal Revenue Service Generally, an application filed after III—Ruling Request. Doing so will Room 4516 the appropriate due date stated above result in a significant delay in the 1111 Constitution Ave., NW is considered late. processing of your request. Washington, DC 20224-0002 However, applications filed within 90 days after the due date may be CFCs and 10/50 corporations. If The applicant will receive considered as timely filed when the the form is filed on behalf of a CFC or notification of its approval or denial. If applicant establishes that: 10/50 corporation, the controlling no communication is received from the IRS regarding the application 1. The taxpayer acted reasonably domestic shareholder who retains the within 90 days, contact the Control and in good faith, and jointly executed consent described in Regulations section 1.964-1(c)(3)(ii) Clerk.

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Exempt organizations requesting a CFC or 10/50 corporation must be should not complete the “Paid ruling should send Form 1128 and signed by an authorized officer of the Preparer's Use Only” section. any applicable user fee to: designated (controlling domestic) shareholder that retains the jointly Internal Revenue Service executed consent as provided for in Specific Instructions 1973 N Rulon White Blvd Regulations section 1.964-1(c)(3)(ii). M/S 6273 A schedule listing the name(s) and Part I—General Ogden, Utah 84201 identifying number(s) of the controlling Information domestic shareholder(s) must be All applicants must complete Part I. You can inquire about the status of attached to the application. Also, the Attachments to Form 1128 must show an application for exempt controlling domestic shareholder(s) the applicant's name, identifying organizations by calling must satisfy the requirements of number, and the address. Also 877-829-5500. Regulations section 1.964-1(c)(3). If indicate that the statement is an the designated (controlling domestic) attachment to Form 1128. Who Must Sign shareholder is a member of a Name Except as discussed below (regarding consolidated group, then an automatic approval requests filed on authorized officer of the common In general, the filer of the form is the behalf of a CFC or 10/50 corporation), parent must sign. Do not sign the applicant. If filing a joint return, include Form 1128 must be signed by the filer copy of Form 1128 filed with the the names of both spouses. If the as discussed below. A valid signature income tax return. applicant is a corporation, partnership, estate, trust, or by the individual or an officer of the Automatic approval request. An organization is required on Form tax-exempt organization, etc., enter automatic ruling request application the name of the entity or organization. 1128. If the form does not have a valid that is filed on behalf of a CFC or signature, it will not be considered. 10/50 corporation does not have to be Filer different from applicant. For Individuals signed. However, the controlling members of a consolidated group of domestic shareholder completing the corporations and certain foreign If filing a joint return, both spouses corporations, Form 1128 may be filed must sign. form must satisfy the requirements of Regulations section 1.964-1(c)(3) and on behalf of the applicant. For a Partnerships retain the jointly executed consent consolidated group of corporations, enter the name and employer Include the signature, name and title described in Regulations section identification number (EIN) of the of a general partner on behalf of a 1.964-1(c)(3)(ii). parent corporation on the first line as state law partnership, or a All Other Filers the filer and enter the name(s) and member-manager on behalf of a EIN(s) of the member corporations limited liability company. If the filer is a corporation, the application must include the signature applying for a change in accounting Estates of the president, vice president, period on the fourth line. For CFCs Include the signature, name, and title treasurer, assistant treasurer, or chief and 10/50 corporations, enter the of the fiduciary or other person legally accounting officer (such as tax officer) name and EIN of the controlling authorized to sign. authorized to sign, and their official domestic shareholder(s) (common title. Receivers, trustees, or assignees parent, if applicable) on the first line Trusts must sign any application they are and the name and EIN, if any, of the Include the signature, name, and title required to file. For a consolidated foreign corporation on the fourth line. of the fiduciary or other person legally group filing a consolidated return with If there is more than one filer or authorized to sign. its common parent, Form 1128 should applicant, attach a statement listing each filer's or applicant's name and Tax-Exempt Organizations be signed by an authorized officer of the common parent corporation. EIN. Include the signature, name, and title of a principal officer or other person Paid Preparer Identifying Number legally authorized to sign. Generally, anyone who is paid to Individuals enter their social security number (SSN). If filing a joint income CFC or 10/50 Corporation prepare Form 1128 must sign it and fill in the “Paid Preparer Use Only” area. tax return, enter the SSN of both For a CFC or 10/50 corporation with a The paid preparer must complete the spouses. However, if one or both U.S. trade or business and filing Form required information and sign the spouses are engaged in a trade or 1128 as the applicant, follow the same return in the space provided for the business and Form 1128 is filed on rules as other corporations (see All preparer's signature. However, if the behalf of the business, enter the EIN Other Filers, later). If the form is being applicant is requesting automatic instead of the SSNs. All other filed on behalf of a CFC or 10/50 approval and a copy of Form 1128 is applicants enter their EIN. corporation by its controlling domestic attached to the income tax return, the shareholder(s), follow the instructions copy of Form 1128 does not have to You can apply for an EIN online below for ruling requests and be signed. (only for applicants in the United automatic approval requests. States or U.S. possessions), by telephone (only for applicants outside Ruling request. A ruling request Note. Anyone who prepares Form of the United States or U.S. application that is filed on behalf of a 1128 but does not charge a fee possessions), or by fax or by mail

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using Form SS-4, Application for nearest to December 31). A calendar year basis and attaching Employer Identification, depending on 52-53-week tax year must end on the Form 1128. If the applicants want to how soon you need to use the EIN. date a specified day of the week last change to a fiscal year, file a Form Use only one method for each entity occurs in a particular month or on the 1128 under the procedures of either so you don't receive more than one date that day of the week occurs Rev. Proc. 2006-45, 2006-46, EIN for an entity. For more information nearest to the last day of a particular 2002-39, 2002-1 C.B. 1046 or any on applying for an EIN, see the calendar month. successor. Instructions for Form SS-4. A newly formed partnership or PSC Note. Applicants requesting an that wants to adopt a tax year other An SSN must be applied for on automatic approval must complete than its required tax year must go to Form SS-5, Application for a Social Parts I and II only. Security Card. Form SS-5 can be Part III after completing Part I. A user fee is not required if obtained at SSA offices or by calling Line 2c. An applicant's first tax year TIP requesting an automatic the SSA at 1-800-772-1213 (TTY 1– generally starts when business approval under any of the 800–325–0778). It is also available operations begin. from the SSA website at SSA.gov. sections of Part II listed below. A corporation's tax year begins at the earliest date it first: If the applicant has not received its Complete Part II if the applicant can Has shareholders, EIN or SSN by the time the application use the automatic approval rules Has assets, or is due, write “Applied for” in the space under one of the sections listed below Begins doing business. for the identifying number. and the application is filed on time. The initial year ends on the day before Foreign corporations. If the the first day of the new tax year. applicant is a foreign corporation that Section of Part II of Form 1128 To If the applicant is changing a tax Complete is not otherwise required to have or year, the required short period return obtain an EIN, enter “Not applicable” (usually for a period of less than 12 Complete in the space provided for the months) is for the period that begins If the applicant is: only: identifying number. on the day following the close of the Address old tax year and ends on the day A corporation (other than an S Section A corporation or a PSC) Include the suite, room, or other unit before the first day of the new tax number after the street address. If the year. A partnership, S corporation, Section B PSC, or a trust Post Office does not deliver mail to For example, in 2017, a the street address and the filer has a corporation, which has a tax year An individual Section C P.O. box, show the box number ending December 31, requests a new A tax-exempt organization Section D instead. tax year ending March 31. The corporation's first effective tax year If the filer receives its mail in care of (short year) begins on January 1, If the applicant does not qualify for a third party (such as an accountant or 2017, and ends on March 31, 2017. attorney), enter on the street address automatic approval, a ruling must be line “C/O” followed by the third party's requested. See Part III for more Part II—Automatic information. name and street address or P.O. box. Approval Request Person To Contact Note. All references to the Revenue If the Service Center denies The person to contact must be the Procedures listed are to that Revenue approval because Form 1128 was not person authorized to sign the Form Procedure or its successor. filed on time, the applicant can 1128, or the applicant's authorized Part II is completed by applicants request relief under Regulations representative. If the person to requesting automatic approval of a section 301.9100-3, discussed earlier contact is not the filer or the applicant, change in tax year under: under Late Applications. The attach Form 2848, Power of Attorney Rev. Proc. 2006-45 (corporations) applicant completes Part III, as and Declaration of Representative. as clarified and modified by Rev. discussed later, and sends Form 1128 Proc. 2007-64, 2007-42 I.R.B. 818 at to the IRS National Office for Line 1. Check all applicable box(es) www.irs.gov/irb/2007-42_IRB/ consideration. to indicate the type of entity filing this index.html, application. For example, an entity Section A—Corporations Rev. Proc. 2006-46 (pass-through that is a domestic corporation may (Other Than S Corporations or entities), also be a regulated investment Rev. Proc. 2003-62 (individuals), Personal Service Corporations) company (RIC). That entity would Rev. Proc. 76-10, 1976-1 C.B. 548 Rev. Proc. 2006-45 provides check both the “Domestic corporation” as modified by Rev. Proc. 79-3, exclusive procedures for a box and the “Other” box, and write, 1979-1 C.B. 483, and Rev. Proc. corporation to obtain automatic “RIC under sec. 851” on the dotted 85-58 (exempt organizations), and approval to change its annual line. Rev. Proc. 85-15, 1985-1 C.B. 516 accounting period under section 442 Lines 2a and 2b. If the requested (all filers), to correct the adoption of and Regulations section 1.442-1(b). A year is a 52-53-week tax year, an improper tax year to a calendar corporation complying with all the describe the year (for example, last year by filing an amended return on a applicable provisions of this revenue Saturday in December or Saturday procedure will be deemed to have

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established a business purpose and changing to its required tax year and 2006-45. This related party change is obtained the approval of the IRS to is not described in items (1) through required notwithstanding the testing change its accounting period. See (11), above. date provisions in section 706(b)(4) Rev. Proc. 2006-45 for more (A)(ii), section 898(c)(3)(B), information. Note. If the corporation is not allowed Temporary Regulations section to use the automatic approval rules Line 1. A corporation is not allowed 1.921-1T(b)(6), and the special because of items (1), (2), or (3), listed provision in section 706(b)(4)(B). to use the automatic approval rules above, it can nevertheless under section 4 of Rev. Proc. 2006-45 automatically change to a natural Section B—Partnerships, S if it: business year that meets the Corporations, Personal Service 1. Has changed its annual 25-percent gross receipts test Corporations, and Trusts accounting period at any time within described in section 5.04 of Rev. Rev. Proc. 2006-46 provides the most recent 48-month period Proc. 2006-45. exclusive procedures for a ending with the last month of the If the answer to the question on partnership, S corporation, PSC, or requested tax year. For exceptions, Part II, Section A, line 1, is “Yes,” sign trust within its scope to adopt, see section 4.02(1) of Rev. Proc. Form 1128 and see change, or retain its annual 2006-45. Part II—Automatic Approval Request accounting period under section 442 2. Has an interest in a earlier under Where To File. Do not and Regulations section 1.442-1(b). pass-through entity as of the end of complete Part III. If the corporation is Rev. Proc. 2006-46 generally the short period. For exceptions, see requesting to change to a natural applies to trusts that are using an section 4.02(2) of Rev. Proc. 2006-45. business year that satisfies the incorrect tax year and want to change 25-percent gross receipts test, also 3. Is a shareholder of a FSC or to the required calendar tax year. include its gross receipts for the most IC-DISC, as of the end of the short However, exceptions apply to trusts recent 47 months (or for any period. For exceptions, see section exempt from taxation under section predecessor). 4.02(3) of Rev. Proc. 2006-45. 501(a), charitable trusts described in 4. Is a FSC or an IC-DISC. If the answer to the question on section 4947(a)(1), and grantor trusts 5. Is an S corporation. Part II, Section A, line 1, is “Yes” described in Rev. Rul 90-55. because the applicant is a CFC that 6. Attempts to make an S wants to make a one-month deferral Line 4. A partnership, S corporation, corporation election for the tax year election under section 898(c)(2), see PSC, or trust is precluded from using immediately following the short Rev. Proc. 2007-64 which modifies the automatic approval rules under period, unless the change is to a the terms and conditions for this section 4 of Rev. Proc. 2006-46 if any permitted S corporation tax year. election provided in Rev. Proc. of the following apply: 7. Is a PSC. 2006-45. If a CFC wants to revoke its 1. The entity is under examination, 8. Is a CFC. For exceptions, see one-month deferral election under unless it complies with the procedures section 4.02(8) of Rev. Proc. 2006-45. section 898(c)(2) and change its tax provided in section 7.03(1) of Rev. year to the majority U.S. shareholder Proc. 2006-46. 9. Is a tax-exempt organization, year (as defined in section 898(c)(3)), other than an organization exempt 2. The entity is before an appeals the CFC's controlling domestic from tax under section 521, 526, 527, office with respect to any income tax shareholders must indicate the or 528. issue and its annual accounting change in the tax year on the Form period is an issue under consideration 10. Is a cooperative association 5471, Information Return of U.S. by the appeals office. (within the meaning of section Persons With Respect To Certain 3. The entity is before a federal 1381(a)) with a loss in the short period Foreign Corporations, filed with required to effect the change of court with respect to any income tax respect to the CFC's first effective issue and its annual accounting annual accounting period, unless the year. patrons of the cooperative association period is an issue under consideration If the answer to the question on are substantially the same in the year by the federal court. Part II, Section A, line 1, is “No,” go to before the change of annual 4. On the date the partnership or S Part III. accounting period, in the short period corporation would otherwise file its required to effect the change, and in Line 3. If a corporation's interest in a application, the partnership's or S the year following the change. pass-through entity, CFC, FSC, or corporation's annual accounting 11. Is a corporation leaving a IC-DISC (related entity) is disregarded period is an issue under consideration consolidated group. The corporation under section 4.02(2) or 4.02(3) of in the examination of a partner's or is not allowed to use the automatic Rev. Proc. 2006-45 because the shareholder's federal income tax approval request procedures during related entity is required to change its return or an issue under consideration the consolidated group's tax year in tax year to the corporation's new tax by an area office or by a federal court which the corporation ceased to be a year (or, in the case of a CFC, to a tax with respect to a partner's or member of the consolidated group. year beginning one month earlier than shareholder's federal income tax See Rev. Proc. 2007-64 for details. the corporation's new tax year), the return. related entity must change its tax year 12. Has a required tax year (for concurrently with the corporation's Note. If any of the above example, a real estate investment change in tax year, under Rev. Proc. circumstances apply, you may still be trust), unless the corporation is eligible under the automatic approval

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request procedures if you comply with The applicant is before a federal b. The same computation as in a, the procedures explained following court and the applicant's annual above, is made for the two preceding item 5 below. See section 7.03 of accounting period is not an issue 12-month periods ending with the last Rev. Proc. 2006-46 for more under consideration by the federal month of the requested annual information. court. The applicant must attach to the accounting period. 5. The entity has changed its application a separate statement 2. Natural business year: signed by the applicant certifying that, annual accounting period at any time a. Except as provided in b, below, to the best of the applicant's within the most recent 48-month if each of the three results described knowledge, the applicant's annual period ending with the last month of in 1 above equals or exceeds 25 accounting period is not an issue the requested tax year. For this percent, then the requested annual under consideration by the federal purpose, the following changes are accounting period is deemed to be the court. The applicant must also provide not considered prior changes in taxpayer's natural business year. annual accounting period: (a) a a copy of the application to the b. The taxpayer must determine change to a required tax year or government counsel at the same time whether any annual accounting period ownership tax year; (b) a change from it files the application with the Service other than the requested annual a 52-53-week tax year to a Center. The application must contain accounting period also meets the non-52-53-week tax year that ends the name and telephone number of 25-percent test described in a, above. with reference to the same calendar the government counsel. If one or more other annual month, and vice versa; or (c) a If the answer to the question on accounting periods produce higher change in accounting period by an S Part II, Section B, line 4, is “No” averages of the three percentages corporation or PSC, in order to comply because the applicant (or a partner or (rounded to 1/100 of a percent) with the common tax year shareholder) is under examination described in 1 above than the requirements of Regulations sections and has not obtained the appropriate requested annual accounting period, 1.1502-75(d)(3)(v) and 1.1502-76(a). director's consent to the change or then the requested annual accounting retention of the applicant's annual If the answer to the question on period will not qualify as the accounting period or the applicant is Part II, Section B, line 4, is “Yes,” and taxpayer's natural business year. before an appeals office or federal any of the following situations apply, court and the applicant's annual 3. Special rules: the applicable additional procedures accounting period is an issue under a. To apply the 25-percent gross described below must be followed. consideration by the appeals office or receipts test for any particular year, The applicant is under examination federal court, do not complete Part III. the taxpayer must compute its gross and has obtained the consent of the receipts under the method of appropriate director to the change or If the answer to line 4 is “No” solely accounting used to prepare its federal retention of the applicant's annual because of a prior change as income tax returns for such tax year. accounting period. The applicant must described in item (5) above, go to Part attach to the application a statement III after completing Section B. b. If the taxpayer has a from the director consenting to the If the answer to line 4 is “Yes” (and predecessor organization and is change or retention. The applicant the answer to line 5, 6, or 7 is also continuing the same business as its must also provide a copy of the “Yes”), sign Form 1128 and see Part predecessor, the taxpayer must use application to the director at the same II—Automatic Approval Request the gross receipts of its predecessor time it files the application with the under Where To File, earlier. Do not for purposes of computing the Service Center. The application must complete Part III. If the answer to 25-percent gross receipts test. contain the name(s) and telephone line 4 is “Yes” (and the answer to c. If the taxpayer (including any number(s) of the examination line 5, 6, or 7 is “No”), go to Part III. predecessor organization) does not agent(s). Line 6. A partnership, S corporation, have a 47-month period of gross The applicant is before an appeals electing S corporation, or PSC receipts (36-month period for the office and the applicant's annual establishes a "natural business year" requested tax year plus an additional accounting period is not an issue under Rev. Proc. 2006-46 by 11-month period for comparing the under consideration by the appeals satisfying the following "25-percent requested tax year with other potential office. The applicant must attach to gross receipts test." The applicant tax years), then it cannot establish a the application a separate statement must supply its gross receipts for the natural business year under this signed by the applicant certifying that, most recent 47 months (or for any revenue procedure. to the best of the applicant's predecessor) to compute the d. If the requested tax year is a knowledge, the applicant's annual 25-percent gross receipts test. 52-53-week tax year, the calendar accounting period is not an issue 1. Prior 3 years gross receipts: month ending nearest to the last day under consideration by the appeals of the 52-53-week tax year is treated office. The applicant must also a. Gross receipts from sales and as the last month of the requested tax provide a copy of the application to services for the most recent 12-month year for purposes of computing the the appeals officer at the same time it period that ends with the last month of 25-percent gross receipts test. files the application with the Service the requested annual accounting Center. The application must contain period are totaled and then divided Line 7. For an S corporation, an the name and telephone number of into the amount of gross receipts from "ownership tax year" is the tax year the appeals officer. sales and services for the last 2 other than a calendar year (if any) months of this 12-month period.

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that, as of the first day of the first 2. The organization has changed effective year, constitutes the tax year its tax year at any time within the last Sections of Part III of Form 1128 of one or more shareholders 10 calendar years ending with the to Complete (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 organization described in an S corporation, 10/50 B, plus any other 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 exemption is denied under section An S corporation Sections A and C 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. Rev. Proc. 85-58 does not apply to: An Estate Sections A and G 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. ! tax years contained in Regulations CAUTION this application is approved. section 1.442-1(b), Rev. Proc. A central organization should follow 2002-39, or any other applicable Rev. Proc. 76-10 to apply for a group Rev. Proc. 2002-39 provides the administrative procedure published by change in tax year for all its general procedures for obtaining the IRS. subordinate organizations. approval to adopt, change, or retain a 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. must concurrently change its tax year federal income tax under section 521, as a term and condition of the Certain organizations that have Section A—General Information approval of the taxpayer's request to unrelated business taxable income All applicants must complete this change its tax year. defined in section 512(a), and section to request a ruling on an 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. Section D—Tax-Exempt retention of the applicant's annual If the answer to this question is accounting period. The applicant must 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 the simplified method of either Rev. Part III—Ruling Request accounting period. The applicant must Proc. 85-58 or Rev. Proc. 76-10. Part III is completed only by applicants also provide a copy of the application requesting to adopt, change, or retain to the director at the same time it files Under Rev. Proc. 85-58, an a tax year that cannot use the the application with the IRS National organization exempt under section automatic procedures listed in Part II. Office. The application must contain 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

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person's knowledge, the entity's Rev. Proc. 2002-39, the applicant Investment Company (PFIC) annual accounting period is not an must supply its gross receipts for the completes Section B and attaches the issue under consideration by the most recent 47 months (or for any statement required by Section H. appeals office. The applicant must predecessor). Complete Sections B and F for a also provide a copy of the application Line 14. Applicants filing to request a tax-exempt organization that is a to the appeals officer at the same time letter ruling on a change in tax year corporation. it files the application with the IRS under Rev. Proc. 2017-1 or its Note. In addition to excluding CFC(s) National Office. The application must successor (updated annually) and contain the name and telephone from Section B, 10/50 corporations Rev. Proc. 2002-39 must pay a user are also excluded. number of the appeals officer. fee. A request for an exempt The applicant is before a federal organization letter ruling on a change Section C—S Corporations court and the applicant's annual in tax year under Rev. Proc. 2017-5, accounting period is not an issue An S corporation must have a 2017-1 I.R.B. 230 at www.irs.gov/irb/ under consideration by the federal permitted tax year unless it has 2017-01_IRB/ar03.html, also requires court. The applicant must attach to the elected under section 444 to have a payment of a user fee. application a separate statement tax year other than the required tax signed by the appropriate person A separate user fee is also required year. A “permitted tax year” is: certifying that, to the best of that for applicants filing a letter ruling 1. A tax year that ends on person's knowledge, the entity's request for an extension of time to file December 31, or annual accounting period is not an under Regulations section 301.9100-3 2. Any other tax year if the issue under consideration by the (including requests under Rev. Procs. corporation can establish a business federal court. The applicant must also 2006-45, 2006-46, and 2003-62 purpose to the satisfaction of the IRS. provide a copy of the application to (Form 1128, Part II, Sections A, B, the government counsel at the same and C)). For purposes of 2, above, any time it files the application with the deferral of income to shareholders will Note. The user fees referred to in the IRS National Office. The application not be treated as a business purpose. above paragraphs are published in must contain the name and telephone For more information, see Rev. Proc. Rev. Proc. 2017-1 (exempt number of the government counsel. 2006-46 and Rev. Proc. 2002–39. organizations, see Rev. Proc. Line 4a. Attach an explanation of the 2017-4), or an annual update. The If any shareholder is applying for a legal basis supporting the requested annual updates are published as corresponding change in tax year, tax year. Include all authority revenue procedures in the Internal that shareholder must file a separate (statutes, regulations, etc.) supporting Revenue Bulletin. The Internal Form 1128 to get advance approval to the requested year. The applicant is Revenue Bulletins can be accessed at change its tax year. encouraged to include all relevant www.irs.gov/irb. The fees for 2017 are Section D—Partnerships facts and circumstances that may in Internal Revenue Bulletin 2017-1. A partnership must obtain advance establish a business purpose. Payment of the user fee (check or approval from the IRS to adopt, Line 4b. If the applicant requests to money order made payable to the change, or retain a tax year unless it is establish a natural business year Internal Revenue Service) must be not required to file Form 1128, or it under the annual business cycle test attached to Form 1128 at the time the meets one of the automatic approval or seasonal business test of sections form is filed. Payment may also be rules discussed earlier in the 5.03(1) and 5.03(2) of Rev. Proc. made through www.pay.gov. See instructions for Part II, Section B. Also 2002-39, it must provide its gross Rev. Proc. 2017-1 (or any successor) see the exceptions for partnerships receipts from sales or services and for more information. under Who Must File, earlier. approximate inventory costs (where Section B—Corporations applicable) for each month in the Partners must also get separate requested short period and for each (Other Than S Corporations advance approval to change their tax month of the three immediately and Controlled Foreign years. preceding tax years. Corporations) Line 23. Enter the first date a If the applicant is requesting to Corporations must complete this business transaction resulted in a tax change to a natural business year that section and any other section in Part consequence, such as receiving satisfies the 25-percent gross receipts III that applies to that particular entity. income or incurring an expense. test described in section 5.03(3) of For example, a Passive Foreign

Privacy Act and Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. Section 442 says that you must obtain IRS approval if you want to adopt, change, or retain a tax year. To obtain approval, you must file an application to adopt, change, or retain a tax year. Sections 6001, 6011, 6012(a), and 6109 and their regulations require you to provide the requested information. Failure to provide this information in a timely manner could delay processing or could result in denial of your application. Providing false information could subject you to penalties. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103.

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However, section 6103 allows or requires the Internal Revenue Service to disclose or give the information shown on your application to others as described in the Code. For example, we may disclose your tax information to the Department of Justice to enforce the tax laws, both civil and criminal, and to cities, states, the District of Columbia, U.S. commonwealths or possessions, and certain foreign governments to carry out their laws. We may also disclose this information to federal and state agencies to enforce federal nontax criminal laws and to combat terrorism. Keep this notice with your records. It may help you if we ask you for other information. If you have any questions about the rules for filing and giving information, call or visit any Internal Revenue Service office. The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for individual taxpayers filing this form is approved under OMB control number 1545-0074 and is included in the estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers who file this form is shown below. Preparing and sending Learning about the the form to Recordkeeping law or the form the IRS Parts I and II 8 hr., 36 min. 5 hr., 51 min. 6 hr., 15 min. Parts I and III 22 hr., 14 min. 5 hr., 37 min. 7 hr., 26 min.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. You can send us comments through IRS.gov/FormComments. Or you can write to Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send the tax form to this office. Instead, see Where To File, earlier.

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