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CHANGE OF ACCOUNTING PERIOD PER REV PRO 85-58 Return of Private Foundation 990-PF Form or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation Department of the Treasury For
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How to fill out change of accounting period:

01
Determine the reason for the change: Assess the specific circumstances that have prompted the need for a change in your accounting period. Common reasons include a shift in business operations, a desire to align the company's fiscal year with industry practices, or a change in ownership.
02
Review the requirements: Familiarize yourself with the rules and regulations governing the change of accounting period. These guidelines are typically outlined by the tax authorities in your jurisdiction, such as the Internal Revenue Service (IRS) in the United States. Understand the specific forms and documentation that may be required for the process.
03
Consult a tax professional: Due to the complexity of accounting period changes, it is recommended to seek guidance from a qualified tax professional or accountant. They can provide personalized advice based on your business's unique circumstances and ensure compliance with applicable regulations.
04
Complete the necessary forms: Obtain the required forms for changing your accounting period, which may vary depending on your jurisdiction. Complete the forms accurately and provide any requested information or supporting documentation.
05
File the forms: Once the forms are completed, submit them to the appropriate tax authorities within the designated timeframe. Be sure to adhere to any filing deadlines to avoid penalties or complications.

Who needs change of accounting period:

01
Startups and new businesses: Many startups and newly established businesses may find it necessary to change their accounting period as they transition from an initial fiscal year to a more suitable period aligned with their operations or industry standards.
02
Businesses undergoing restructuring or change in ownership: When a business undergoes significant changes, such as a merger, acquisition, or change in ownership, it may be necessary to align accounting periods for financial reporting and tax purposes.
03
Companies facing operational changes: A change in business activities, such as a new line of products or a shift in the nature of operations, may require a change in the accounting period to accurately reflect the financial performance during these altered periods.
04
Compliance with tax regulations: In certain jurisdictions, tax regulations may require businesses to adhere to specific accounting periods. Filing taxes based on a different accounting period than mandated by the authorities may result in penalties or non-compliance.
05
Business owners seeking financial reporting consistency: Changing the accounting period can help business owners achieve more consistent financial reporting, making it easier to analyze performance, compare periods, and create financial statements that accurately represent the company's operations.
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Change of accounting period refers to the process of adjusting the fiscal year-end date for a business entity.
Business entities that wish to change their fiscal year-end date are required to file a change of accounting period.
To fill out a change of accounting period, a business entity must submit Form 1128 to the IRS.
The purpose of change of accounting period is to align the fiscal year-end date with the business needs and financial reporting requirements.
The change of accounting period form typically requires information about the current fiscal year-end date, the proposed new fiscal year-end date, and the reason for the change.
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