Form 1128, Application to Adopt, Change, or Retain a Tax Year
Form 1128 is the application for adopting, changing, or retaining a tax year. Businesses and other entities use it when they want a fiscal year, need to switch year ends, or must justify keeping the one they have.
This is the genuine IRS PDF, unmodified. Source: IRS official page.
What is 1128?
A taxpayer’s annual accounting period, its tax year, generally cannot be changed without IRS approval. Form 1128 is how that approval is requested. Part I identifies the filer and the requested year; Part II covers automatic approval requests, where the change qualifies under a published revenue procedure and no user fee applies; Part III covers ruling requests, where the taxpayer must establish a business purpose and pay a user fee.
The form serves corporations, partnerships, S corporations, personal service corporations, trusts, estates, tax-exempt organizations, and certain individuals. Which part applies, where the form is filed, and the deadline all depend on the type of request; the current instructions walk through each path.
Who files 1128?
- Corporations and other businesses that want to change their tax year end
- Partnerships, S corporations, and personal service corporations required to justify adopting or retaining a year other than their required year
- Trusts and exempt organizations changing their accounting period when their circumstances require an application
- Not needed when a change qualifies for an exception that requires no application; check the current instructions first
How to fill out 1128
- Complete Part I with the filer’s name, EIN or SSN, entity type, and the present and requested tax years.
- Determine whether your change qualifies for automatic approval under a published revenue procedure; if so, complete Part II.
- If automatic approval is not available, complete Part III as a ruling request, including the business purpose and the required user fee.
- Attach any statements the instructions require for your entity type and situation.
- Download the completed PDF and file it where and when the instructions direct: automatic requests are generally attached to or filed with the service center, while ruling requests go to the IRS National Office.
Quick fill 1128 on this page
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Frequently asked questions
Do I always need IRS approval to change my tax year?
Usually, yes, but many common changes qualify for automatic approval under published procedures, which means filing Form 1128 without a user fee. A few situations are excepted from filing entirely. The instructions list both categories.
What is a short tax year?
A change in tax year creates a short period return covering the months between the end of the old year and the start of the new one. Income for the short period is generally annualized to figure the tax, and the short period return is due like a regular return.