Answer:
Step-by-step explanation:
No, a taxable year does not have to be a calendar year. The Internal Revenue Service (IRS) allows taxpayers to use a fiscal year instead, as long as it is consistent from year to year. A fiscal year is any 12-month period that ends on the last day of any month except December.
There are a few reasons why a taxpayer might choose to use a fiscal year instead of a calendar year. For example, a business might choose to use a fiscal year that coincides with its natural business year, such as the year in which it has its highest sales. Or, a taxpayer might choose to use a fiscal year to defer taxes or to coincide with the accounting period used for financial reporting purposes.
However, there are also some disadvantages to using a fiscal year. For example, if a taxpayer uses a fiscal year that is different from the calendar year, they may have to file two tax returns in one year. Additionally, the IRS may require taxpayers who use a fiscal year to provide additional documentation to support their choice of fiscal year.