26 U.S. Code § 441 - Period for computation of taxable income
For purposes of this subtitle, the term “annual accounting period” means the annual period on the basis of which the taxpayer regularly computes his income in keeping his books.
For purposes of this subtitle, the term “calendar year” means a period of 12 months ending on December 31.
For purposes of this subtitle, the term “fiscal year” means a period of 12 months ending on the last day of any month other than December. In the case of any taxpayer who has made the election provided by subsection (f) the term means the annual period (varying from 52 to 53 weeks) so elected.
The Secretary shall prescribe such regulations as he deems necessary for the application of this subsection.
For purposes of this subsection, voting power shall be determined on the basis of total combined voting power of all classes of stock of the corporation entitled to vote.
For purposes of this subtitle, the taxable year of any personal service corporation shall be the calendar year unless the corporation establishes, to the satisfaction of the Secretary, a business purpose for having a different period for its taxable year. For purposes of this paragraph, any deferral of income to shareholders shall not be treated as a business purpose.
2007—Subsec. (b)(4). Pub. L. 110–172, § 11(g)(7)(A), struck out “FSC or” before “DISC filing”.
Subsec. (h). Pub. L. 110–172, § 11(g)(7)(B), struck out “FSC’s and” before “DISC’s” in heading and “FSC or” before “DISC” in pars. (1) and (2).
1988—Subsec. (i)(2). Pub. L. 100–647 inserted at end “A corporation shall not be treated as a personal service corporation unless more than 10 percent of the stock (by value) in such corporation is held by employee-owners (within the meaning of section 269A(b)(2), as modified by the preceding sentence). If a corporation is a member of an affiliated group filing a consolidated return, all members of such group shall be taken into account in determining whether such corporation is a personal service corporation.”
1986—Subsec. (f)(2)(B)(iii). Pub. L. 99–514, § 104(b)(6), struck out “and by adding the zero bracket amount,” after “in the short period,”.
Subsec. (f)(3), (4). Pub. L. 99–514, § 806(d), added par. (3) and redesignated former par. (3) as (4).
Subsec. (i). Pub. L. 99–514, § 806(c)(1), added subsec. (i).
1984—Subsec. (b)(4). Pub. L. 98–369, § 803(a), added par. (4).
Subsec. (f)(2)(A). Pub. L. 98–369, § 474(b)(2), substituted “section 15” for “section 21” in provisions preceding cl. (i).
Subsec. (h). Pub. L. 98–369, § 803(b), added subsec. (h).
1977—Subsec. (f)(2)(B)(iii). Pub. L. 95–30 substituted “multiplying the gross income for such short period (minus the deductions allowed by this chapter for the short period, but only the adjusted amount of the deductions for personal exemptions as described in section 443(c)) by 365, by dividing the result by the number of days in the short period, and by adding the zero bracket amount” for “multiplying such income by 365 and dividing the result by the number of days in the short period”.
1976—Subsec. (f)(3). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.
1964—Subsec. (f)(2)(A). Pub. L. 88–272 inserted “, including,” before “or ending with reference to”.
Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Amendment by section 806(c)(1), (d) of Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, with special provisions applicable to taxpayers who are required to change their accounting periods, see section 806(e) of Pub. L. 99–514, set out as a note under section 1378 of this title.
Amendment by section 474(b)(2) of Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1983, and to carrybacks from such years, see section 475(a) of Pub. L. 98–369, set out as a note under section 21 of this title.
Amendment by section 803 of Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1984, see section 805(a)(4) of Pub. L. 98–369, as amended, set out as a note under section 245 of this title.
Nothing in section 806 of Pub. L. 99–514 or in any legislative history relating thereto to be construed as requiring the Secretary of the Treasury or his delegate to permit an automatic change of a taxable year, see section 1008(e)(9) of Pub. L. 100–647, set out as a note under section 1378 of this title.
Written determinations for this section
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