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Department of the Treasury
Internal Revenue Service
Instructions for Form 1128

(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 501(a) does not file Form 1128 unless
year. 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
period (see Rev. Proc. 85-58, 1985-2
Corporations
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. Form 5308, Request for Change in
A newly formed partnership
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.

Oct 24, 2017 Cat. No. 61752V

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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) 
Tax Year Adoption, Change, or             presumed to jeopardize the interests 
                                                                                   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 
extensions) of the federal income tax     extension request must be filed under    Note.  If a corporation is required to 
return for the first effective year. Do   Regulations section 301.9100-3 and       file Form 1128 with its tax return and 
not file earlier than the day following   is a ruling request under Rev. Proc.     is a member of an affiliated group of 
the end of the first effective year. In   2017-1, I.R.B. 1 at www.irs.gov/irb/     corporations filing a consolidated 
the case of a change in tax year, the     2017-1_IRB/ar07.html (updated            return, the common parent must file 
first effective year is the short period  annually). The extension is also         the Form 1128 with the consolidated 
required to effect the change.            subject to public inspection under       return.
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 
return for its tax year with or within    Part II—Automatic Approval               Part III—Ruling Request
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)  appropriate user fee with the IRS 
For an individual filing to change to     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  of the application within 45 days. You 
Section D), file by the 15th day of the   short period required to effect the      can inquire about the status of the 
5th calendar month after the end of       change.                                  application by writing to:
the short period.
                                                   Do not file a request for 
                                                   automatic approval with either  Control Clerk, CC:ITA
Late Applications                         CAUTION!                                 Internal Revenue Service
                                                   address below in Part 
Generally, an application filed after                                              Room 4516
                                          III—Ruling Request. Doing so will 
the appropriate due date stated above                                              1111 Constitution Ave., NW
                                          result in a significant delay in the 
is considered late.                                                                Washington, DC 20224-0002
                                          processing of your request.
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 
1. The taxpayer acted reasonably          domestic shareholder who retains the     the IRS regarding the application 
and in good faith, and                    jointly executed consent described in    within 90 days, contact the Control 
                                          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 tax-exempt organization, etc., enter
organization is required on Form 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
If filing a joint return, both spouses domestic shareholder completing the corporations and certain foreign
must sign. form must satisfy the requirements of corporations, Form 1128 may be filed
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,
Include the signature, name and title described in Regulations section enter the name and employer
of a general partner on behalf of a 1.964-1(c)(3)(ii). identification number (EIN) of the
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
limited liability company. If the filer is a corporation, the EIN(s) of the member corporations
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
be signed by an authorized officer of each filer's or applicant's name and
Tax-Exempt Organizations EIN.
the common parent corporation.
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
prepare Form 1128 must sign it and fill number (SSN). If filing a joint income
CFC or 10/50 Corporation tax return, enter the SSN of both
in the “Paid Preparer Use Only” area.
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
Ruling request. A ruling request Note. Anyone who prepares Form telephone (only for applicants outside
application that is filed on behalf of a 1128 but does not charge a fee of the United States or U.S.
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
An SSN must be applied for on that wants to adopt a tax year other
automatic approval must complete
Form SS-5, Application for a Social than its required tax year must go to
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
If the applicant has not received its the earliest date it first:
Complete Part II if the applicant can
EIN or SSN by the time the application Has shareholders,
use the automatic approval rules
is due, write “Applied for” in the space Has assets, or
under one of the sections listed below
for the identifying number. Begins doing business.
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.
Section of Part II of Form 1128 To
applicant is a foreign corporation that 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
Include the suite, room, or other unit before the first day of the new tax corporation or a PSC)
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
requested. See Part III for more
line “C/O” followed by the third party's 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) consideration.
www.irs.gov/irb/2007-42_IRB/
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 Personal Service Corporations)
Rev. Proc. 2003-62 (individuals),
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 1.921-1T(b)(6), and the special
Line 1. A corporation is not allowed 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
3. Is a shareholder of a FSC or 25-percent gross receipts test, also
to the required calendar tax year.
IC-DISC, as of the end of the short include its gross receipts for the most
However, exceptions apply to trusts
period. For exceptions, see section recent 47 months (or for any
exempt from taxation under section
4.02(3) of Rev. Proc. 2006-45. predecessor).
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
Part II, Section A, line 1, is “Yes”
5. Is an S corporation. 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 court with respect to any income tax
required to effect the change of respect to the CFC's first effective issue and its annual accounting
annual accounting period, unless the year. period is an issue under consideration
patrons of the cooperative association
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:
annual accounting period at any time signed by the applicant certifying that,
a. Except as provided in b, below,
within the most recent 48-month to the best of the applicant's
if each of the three results described
period ending with the last month of knowledge, the applicant's annual
in 1 above equals or exceeds 25
the requested tax year. For this accounting period is not an issue
percent, then the requested annual
purpose, the following changes are under consideration by the federal
accounting period is deemed to be the
not considered prior changes in court. The applicant must also provide
taxpayer's natural business year.
annual accounting period: (a) a a copy of the application to the
change to a required tax year or government counsel at the same time b. The taxpayer must determine
ownership tax year; (b) a change from it files the application with the Service whether any annual accounting period
a 52-53-week tax year to a Center. The application must contain other than the requested annual
non-52-53-week tax year that ends the name and telephone number of accounting period also meets the
with reference to the same calendar the government counsel. 25-percent test described in a, above.
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, 3. Special rules:
court and the applicant's annual
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
appropriate director to the change or If the answer to line 4 is “No” solely receipts under the method of
retention of the applicant's annual because of a prior change as accounting used to prepare its federal
accounting period. The applicant must described in item (5) above, go to Part income tax returns for such tax year.
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). have a 47-month period of gross
Line 6. A partnership, S corporation,
The applicant is before an appeals receipts (36-month period for the
electing S corporation, or PSC
office and the applicant's annual requested tax year plus an additional
establishes a "natural business year"
accounting period is not an issue 11-month period for comparing the
under Rev. Proc. 2006-46 by
under consideration by the appeals requested tax year with other potential
satisfying the following "25-percent
office. The applicant must attach to tax years), then it cannot establish a
gross receipts test." The applicant
the application a separate statement natural business year under this
must supply its gross receipts for the
signed by the applicant certifying that, revenue procedure.
most recent 47 months (or for any
to the best of the applicant's d. If the requested tax year is a
predecessor) to compute the
knowledge, the applicant's annual 52-53-week tax year, the calendar
25-percent gross receipts test.
accounting period is not an issue month ending nearest to the last day
under consideration by the appeals 1. Prior 3 years gross receipts:
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 S corporation, 10/50 B, plus any other
An organization described in
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 An S corporation Sections A and C
exemption is denied under section
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. CAUTION!
tax years contained in Regulations 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
Line 8. Answer “Yes” if the Rev. Proc. 76-10 does not apply to:
under the automatic approval rules or
partnership is a related entity that Farmers' cooperatives exempt from
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. retention of the applicant's annual
Section D—Tax-Exempt
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 the application with the IRS National
a tax year that cannot use the
organization exempt under section Office. The application must contain
automatic procedures listed in Part II.
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 tax-exempt organization that is a
Line 14. Applicants filing to request a
to the appeals officer at the same time corporation.
letter ruling on a change in tax year
it files the application with the IRS
under Rev. Proc. 2017-1 or its
National Office. The application must Note. In addition to excluding CFC(s)
successor (updated annually) and
contain the name and telephone from Section B, 10/50 corporations
Rev. Proc. 2002-39 must pay a user
number of the appeals officer. are also excluded.
fee. A request for an exempt
The applicant is before a federal Section C—S Corporations
organization letter ruling on a change
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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