ExpressExtension Support

What reason should I check to indicate a short tax period?

If you are confused about what reason you should check to indicate a short tax period, here are examples to guide your choice:

Initial Return
If your business was formed on July 1 and chose the calendar year as your tax year, your business's first tax return would cover the short period from July 1 to December 31. You must check the 'Initial Return' box from the available options to indicate this to the IRS.

Final Return
If your business was operating on a calendar year and terminated on August 15, your business's final return would cover the short period from January 1 to August 15. You must check the 'Final Return' box from the available options to indicate this to the IRS.

Change in Accounting Period
If your business decides to change its financial year from a calendar year (January 1 to December 31) to a different period, you must check the 'Change in Accounting Period' box from the available options.

Note: If you check this box, you must receive IRS approval to change your tax year, unless certain conditions have been met. For more information, see Form 1128 and Pub. 538, Accounting Periods and Methods.

Consolidated Return
Check this box if your organization is a corporation, common parent of a group, or agent of a consolidated group that intends to file a consolidated return.

A consolidated tax return is a corporate income tax return for an affiliated group of corporations that elect to report their taxes jointly on one return. Generally, all members of a consolidated group must use the same taxable year as the common parent corporation.

Other Reason
Check this box if there is any other reason for the short tax year.