What This Notice Means

The IRS approved your Form 1128, Application to Adopt, Change, or Retain a Tax Year. This is the approval you were waiting for.

Form 1128 is used to change a tax year end date. The change must be approved before you can use the new date. Partnerships, S corporations, personal service corporations, and trusts may also be required to file it to adopt or retain a certain tax year.

What to Do

  • File your return by the due date for the short period tax year that ends on the date you chose on Form 1128.
  • Keep this notice in your permanent records.
  • Give a copy to your tax preparer.

The Short Period Return

Changing your tax year usually creates a short tax year: the stretch between the end of your old tax year and the start of your new one. That short period gets its own return. Its due date is tied to the date you chose, not to your old year end.

Put that due date on your calendar now. A missed short period return is an easy mistake in the year of a change, and it leads to the same late filing problems as any other missed return.

Update Everything Else

  • Change your accounting system's fiscal year settings.
  • Adjust estimated tax payment dates, if they apply to you, to fit the new year.
  • Let your bank, lenders, and partners or shareholders know the reporting year has changed.

Why Keep This Notice

Years from now someone will ask why your return covers an unusual period. This notice is the answer. Keep it with your permanent business records.

If you received a CP284 notice and want help with the short period return, call us at (813) 229-7100.