202k views
1 vote
A firm cannot change its tax year without formally requesting and receiving permission from the IRS. True or False?

User Jussij
by
7.2k points

1 Answer

0 votes

Final answer:

A firm can change its tax year under certain circumstances.

Step-by-step explanation:

False.

A firm can change its tax year without formally requesting and receiving permission from the IRS under certain circumstances.

For example, a corporation can obtain permission to change its tax year by filing Form 1128 - Application to Adopt, Change, or Retain a Tax Year with the IRS. The IRS will then review the application and grant permission if it meets certain requirements.

User Cerissa
by
9.3k points