Short year filings for corporate returns
In certain situations, you may need to file a short period return before the IRS has begun accepting returns for that year, or before software has been released for that year. In such cases, the current year software can be used as long as the actual beginning and ending dates of the short period are used. The return must reflect the laws applicable to the short year return even though the software being used was developed for a prior year return.
1120
When a short period corporate return's being filed, in some cases the regulations require Form 1128 to be attached, provide an explanation why the short period return's being filed, or cite the applicable Revenue Procedure. If Form 1128 is used, attach it to the top level of the return as a PDF file and describe it as: Form 1128 for Short Period Return.If an explanation's required, it can be submitted in the General Dependency XML document or in a PDF file. Provide the regulatory citation and explanation in a General Dependency PDF file with the description: Short Period Return Explanation.
1120
To prevent processing delays, the IRS has added to the 1120, 1120S, and 1120-F schema indicators of the valid reasons for filing a short period return. If the reason for a short period return isn't listed, use the General Dependency to indicate the reason why a short period return's being filed.Valid reasons for Forms 1120/1120-F
- National Office Grant Letter
- Filed under Revenue Procedure 2006-45 or 2006-46
- Notation referring to Section 898 (c)(1)(A)
- Election Change in taxable year under Section 898 (c)(2)
- Section 1398 Election
- Second Short Year after Section 1398 Election
- Section 444 Election Terminated
Valid reasons for Form 1120S
- National Office Grant Letter
- Filed Under Revenue Procedure 2006-46
- S Election Termination or revocation is checked
- Statement on Qualifying Disposition under Reg. 1.1368-1(g)(2)(i)
- Statement on Termination of Shareholders Interest under Reg. 1377(a)(2) and 1.1377-(1)b
- Statement referring to S Election and taxpayer is changing to 12/31 calendar year end
- Statement the S corporation is coming out of consolidation
- Statement the corporation is a qualified sub chapter S subsidiary
- Section 444
- 1120S Box A contains a date matching the Tax Period Begin Date
- Section 1398 Election
- Second Short Year after Section 1398 Election
Set up short year return in Organizer
- Go toOrganizer,General Information, and thenBasic Return Information.
- SelectReturn Information.
- In theDatessection, selectShort year return.
- Enter the beginning and ending fiscal year dates. Be sure that other dates within the return are correct for the short-year return. For example, sales of capital assets should have the correct year for date sold.
- If applicable, also select one of theShort Year Period Indicators, such as Section 1398.
