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Proper tax year Fiscal "C" converts to "S"

  • 1.  Proper tax year Fiscal "C" converts to "S"

    Platinum Most Valuable Member
    Posted 09-12-2019 09:36
    Can someone help me through the tax year and converting a fiscal "C" to an "S"

    my client has a June 30th 2019 year end.  If i elect "S"  am i right that
    • it must be a calendar year  ( individual shareholders on a calendar year )
    • and i would have a short period from July 1 through Dec 31 of 2019
    • the change to "S" is automatic permission to change my tax year, so no request necesary for a year end change.


    for various reasons, i would prefer my election to be effective Jan 1 2020. Would i then need to apply for a request to change my year end


    Any help appreciated



    Abby



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    Abby Alhante
    KURCIAS & ALHANTE, CPAs LLC
    Melville NY
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  • 2.  RE: Proper tax year Fiscal "C" converts to "S"

    Posted 09-13-2019 09:14
    Your non-calendar year end option is a natural business year or a Section 444 election (Form 8716 - for year end: Sept, Oct or Nov). 

    A 444 election and a S election are not difficult but it must be handled correctly, timely and documented properly. 

    You would also have a Form 8752 due each May 15 forward. 

    This option is often overlooked on retail clients with a large sales volume November and December.   

    Thomas A. Box