26 U.S.C. § 442 — Change of annual accounting period
submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 67 words · no verdicts yet
This law requires IRS approval to change your tax year. A taxpayer's new accounting period only counts as their official tax year if the Secretary approves the change. Certain DISCs that pick a non-calendar year are treated as making this kind of change too.
This section requires government approval before a taxpayer's new accounting period becomes official.
If a taxpayer* changes their annual accounting period, that new period only becomes their "taxable year*" for tax purposes if the Secretary* approves the change.
There's a special rule for DISCs (a type of export-related corporation*). Normally, under section 441(g), a DISC's taxable year is tied to a shareholder's year. If instead a DISC* adopts its own annual accounting period (as defined in section 441(c)) that isn't a calendar year, this section treats that as if the DISC had "changed" its accounting period — meaning it needs the Secretary's approval too, just like any other taxpayer changing its tax year.
If a taxpayer* changes his annual accounting period, the new accounting period shall become the taxpayer’s taxable year* only if the change is approved by the Secretary*. For purposes of this subtitle, if a taxpayer to whom section 441(g) applies adopts an annual accounting period (as defined in section 441(c)) other than a calendar year, the taxpayer shall be treated as having changed his annual accounting period.
Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 149; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)
- 1954Enacted · Act of Aug. 16, 1954, ch. 736
- 1976Amended · Pub. L. 94-455 · 90 Stat. 1834
A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.
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