TRUE OR FALSE: - A sole proprietor must use the same tax year for her business...
TRUE OR FALSE:
- A sole proprietor must use the same tax year for her business as she uses for personal purposes.
- An S corporation may adopt a fiscal year without IRS permission
- A taxable year may be as short as one day or may exceed 360 days
- An estate must adopt a calendar year
- Under no circumstances may a corporation change its fiscal year without advance IRS notice
Homework Answers
1. TRUE
As a sole proprietor one must report all business income or losses on one's personal income tax return, the business itself is not taxed separately.
2. FALSE
The S corporation tax-year rules state that an S corporation must use a permitted year to the satisfaction of the IRS.
3. TRUE
REMICs must have a calendar year as their tax year unless it can establish a business purpose for having a different tax year or It elects under section 444 to have a tax year other than a calendar year
4. TRUE
If you change your fiscal year, you must change your tax year. If you want to change your tax year, you must have IRS approval.
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