Tax Guru – Ker$tetter Letter

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Corp Fiscal Year Selection

Posted by taxguru on July 24, 2011


Subject: Blog: Fiscal Year End

Hello TaxGuru,  

Love your blog. Read your article on Choosing a Fiscal Year (posted Jan. 2010), and was hoping you could answer a question for me. I started a business in March 2011, incorporated in Delaware, and operate as a foreign stock corporation in California. On the EIN, I (predictably) chose December 31st as the end of my fiscal year. Your blog suggests June 30 as the ideal corporate year-end date. Aside from the 1128 form you listed, is there anything else I would need to do to make this change? (i.e, amend articles of incorporation? File anything with Delaware and California?). Would really appreciate your advice.  


  Aspiring 25 year old entrepreneur  


You should be working with a professional tax advisor; especially one who is experienced with multi-state corporate taxation.  It is very easy to screw things up and get into big trouble with the FTB.

As I have said in multiple articles, the fiscal year for a brand new C corp is not officially established with IRS until you file the first 1120 with them, regardless of what you may have entered on the SS-4. You don’t need to send them anything other than your first 1120, or the extension (7004), for the FYE 6/30/11 by 9/15/11.

Good luck.

Kerry Kerstetter


Thank you Kerry. Much appreciated!


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