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Calendar/Fiscal Year Correction for C-corp

November 17, 2016Log In to Post Comments

In 2014 C-corp filed its initial 2013 tax return. When they came to me in 2015 I prepared their 2014 tax return and went with the default calendar year.

A few weeks later, the IRS sent a letter asking which year was the correct one. It turns out that the corporation filed its first year return as a fiscal year ending May 31.

The corporation has decided that calendar year is more favorable to them instead of the fiscal year they chose. So how do I correct the year? Do I go back and amend the 2013 tax return and switch it to calendar year? Do I amend 2014 tax return and include form 3115 for change in year?


You must file Form 1128 to make the change. To change a tax year you must file the form by the due date, not including extensions, of the tax return for the first effective year. In this case, that would mean for the short-year return ending on December 31.


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