§1378 — Taxable year of S corporation

9 cases·1 limited·8 cited

Statute Text — 26 U.S.C. §1378

(a)General rule

For purposes of this subtitle, the taxable year of an S corporation shall be a permitted year.

(b)Permitted year defined

For purposes of this section, the term “permitted year” means a taxable year which—

(1)

is a year ending December 31, or

(2)

is any other accounting period for which the corporation establishes a business purpose to the satisfaction of the Secretary.

For purposes of paragraph (2), any deferral of income to shareholders shall not be treated as a business purpose.

Treasury Regulations

Treas. Reg. §Treas. Reg. §1.1378-1 Taxable year of S corporation
Treas. Reg. §Treas. Reg. §1.1378-1(a) In general.
Treas. Reg. §Treas. Reg. §1.1378-1(b) Adoption of taxable year.
Treas. Reg. §Treas. Reg. §1.1378-1(c) Change in taxable year—(1) Approval required.
Treas. Reg. §Treas. Reg. §1.1378-1(d) Retention of taxable year.
Treas. Reg. §Treas. Reg. §1.1378-1(e) Procedures for obtaining approval or making a section 444 election—(1) In general.
Treas. Reg. §Treas. Reg. §1.1378-1(f) Effective date.

9 Citing Cases

Warrensburg Board & Paper Corp. v. Commissioner 77 T.C. 1107 · 1981

Angerhofer v. Commissioner 87 T.C. 814 · 1986

New Mexico Timber Co. v. Commissioner 84 T.C. 1290 · 1985

Brutsche v. Commissioner 65 T.C. 1034 · 1976

Tri-City Dr. Pepper Bottling Co. v. Commissioner 61 T.C. 508 · 1974

Howell v. Commissioner 57 T.C. 546 · 1972

Bunnel v. Commissioner 50 T.C. 837 · 1968

United States v. Jim Guy Tucker · Cir.

United States v. Jim Guy Tucker 217 F.3d 960 · Cir.