How does my corporation change its accounting period?
Generally we allow a corporation to change their accounting period. If the corporation is required by federal law or receives federal approval to change their accounting period they are considered to have our approval if:
- The corporation files a timely return with the new accounting period for the first year the change is effective for federal purposes.
- California conforms to the federal law that requires the accounting period change.
- California has not determined if it conforms to the federal law that requires the accounting period change.
If your corporation has prior federal approval to change its accounting period or is required by federal law to change, then when you file with us, attach the following information:
- A copy of the IRS Form 1128
- A copy of the federal approval attached to the return for the first year the change is effective for federal purposes.
If you are only requesting an accounting period change with the state of California, then you must send the IRS Form 1128 along with a cover letter stating what is being done and why you are changing your accounting period. Send to:
FRANCHISE TAX BOARD
ATTN: CHANGE OF ACCOUNTING PERIODS AND METHODS COORDINATOR
P.O. BOX 1998
SACRAMENTO CA 95812
In most cases, you must file a short-period return when you change your accounting period.
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Last Updated: 12.19.2018