Starting Your Business/Keeping Tax Records

Accounting Periods and Methods

Changes in Accounting Periods

You must, with certain exceptions, get IRS approval to change your tax year. File a current Form 1128 by the 15th day of the 2nd calendar month after the close of the short tax year to get IRS approval. (The short tax year begins on the first day after the end of your present tax year and ends on the day before the first day of your new tax year.) You must also include the correct user fee, if any, with Form 1128.

Important References:

Publication 538   Accounting Periods and Methods
Form 1128           Application to Adopt, Change, or Retain a Tax Year