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Document for organizations to report accounting period changes and financial information to the IRS, along with detailing their exempt purposes and accomplishments.
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How to fill out change of accounting period

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How to fill out CHANGE OF ACCOUNTING PERIOD

01
Begin by gathering all necessary financial records and documents.
02
Determine the reason for changing the accounting period.
03
Prepare a formal request or application for the change.
04
Complete the necessary forms as required by your local tax authority.
05
Ensure that the new accounting period aligns with your business cycle.
06
Document the proposed new accounting period start and end dates.
07
Review and comply with any regulatory requirements or guidelines.
08
Submit the request and retain a copy for your records.
09
Communicate the changes to relevant stakeholders, including accounting staff.

Who needs CHANGE OF ACCOUNTING PERIOD?

01
Businesses looking to align their financial reporting with their operational cycle.
02
Companies undergoing mergers or acquisitions.
03
Entities transitioning from one accounting method to another.
04
Organizations needing to adjust their fiscal year for tax purposes.
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A change of accounting date occurs when a business stops preparing accounts to one date (the 'old date') and starts preparing accounts to another date (the 'new date').
An accounting period is any time frame used for financial reporting. Transactions that fall within a given date range form part of the statements or reports for that accounting period. An accounting period, or reporting period, is often 12 months. There may be different accounting periods for various business tasks.
An organization may change its accounting period by filing a return for the short tax period that results from the change. A "short tax period" is an accounting period of less than 12 months, and usually occurs when an organization starts operations, changes its accounting period or terminates.
A request for a change to an accounting reference date can be made online (preferred and quickest option) using the Companies House online service or by using a postal version of the Change of accounting reference date (AA01) form. No change can be made to a period for which accounts are overdue.
File Form 1128 to request a change in tax year. Partnerships, S corporations, personal service corporations (PSCs), or trusts may be required to file the form to adopt or retain a certain tax year.
For example, a common reason for changing year-end is to improve cash flow by deferring corporation tax payments. This may be sensible financial management, or it may be a sign that the company is struggling and a warning of greater problems to come.

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Change of Accounting Period refers to the alteration of the time frame covered by a company's accounting records. This can affect the timing of financial reporting and tax obligations.
Businesses that wish to change their accounting period from one tax year to another, or from a fiscal year to a calendar year, are required to file a Change of Accounting Period.
To fill out the Change of Accounting Period, a business must complete the appropriate IRS form (usually Form 1128), providing details about the previous and new accounting periods and the reason for the change.
The purpose of changing the accounting period is to better align the financial reporting with the business cycle, tax planning, or regulatory requirements.
The information required typically includes the current accounting period, the new accounting period, the reason for the change, and any relevant financial data that supports the transition.
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