Publication 583 |
2001 Tax Year |
Tax Year
You must figure your taxable income and file an income tax return
based on an annual accounting period called a tax year. A tax year is
usually 12 consecutive months. There are two kinds of tax years.
- Calendar tax year. This is a period of 12
consecutive months beginning January 1 and ending December 31.
- Fiscal tax year. This is a period of 12
consecutive months ending on the last day of any month except December
or a 52- or 53-week period ending on a specific day of the week
occurring either in the last week or nearest the last day of a
specific month.
If you operate a business as a sole proprietor, the tax year for
your business must be the same as your individual tax year. Special
rules apply to S corporations and partnerships.
For more information, see Publication 538,
Accounting Periods
and Methods.
First-time filer.
If you have never filed an income tax return, you can choose either
a calendar tax year or a fiscal tax year. You must choose a tax year
by the time set by law, not including extensions, for filing your
first return.
You must use a calendar tax year if you have inadequate records or
you have no accounting period, or your annual accounting period does
not qualify as a fiscal year.
Changing your tax year.
Once you have chosen your tax year, you may have to get IRS
approval to change it. To get approval, you must file Form 1128,
Application To Adopt, Change, or
Retain a Tax Year. You may have to pay a fee. For more
information, see Publication 538.
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