What This Notice Means

The IRS denied your Form 8716, Election To Have a Tax Year Other Than a Required Tax Year. The version of the notice tells you why:

  • CP287: you're on a calendar tax year ending December 31.
  • CP287A: the Form 8716 was filed late.
  • CP287B: you don't meet the section 444 deferral period requirements.
  • CP287C: your previous section 444 election ended, and you can make that election only once.

The IRS mails the denied Form 8716 back to you separately.

What to Do

Continue filing your income tax return using your current tax year. Don't file on the fiscal year you asked for.

Key Rules

Due date for Form 8716. It's the earlier of the due date (not including extensions) of the return for the tax year you chose, or the 15th day of the 5th month after the month your election year starts.

Deferral period. The number of months between the last day of the elected tax year and the last day of the required tax year.

One election only. You can make a section 444 election once. It stays in effect until you change to a required tax year, change to another permitted year, or knowingly fail to follow the rules of sections 280H or 7519.

Other Options

If you're an S corporation, you may be eligible to elect a fiscal tax year under Revenue Procedure 2006-46. That is a separate route with its own requirements.

Before you try again, figure out which denial reason applies. A late filing is a different problem than an ineligible deferral period or a used-up election.

If you received a CP287 notice and still want a fiscal year, call us at (813) 229-7100.