Instructions for Filling Out Form 1128

This document serves as a comprehensive guide by the Internal Revenue Service (IRS) for completing Form 1128, which is utilized to request a change in tax year. It offers general instructions, specific directions for each section of the form, and information regarding the Privacy Act and Paperwork Reduction Act.

In this article, we'll provide insights on Form 1128 and a step-by-step guide on how to fill it out.

What is Form 1128?

Form 1128 is a document used by taxpayers to request a change in tax year. It is applicable to partnerships, S corporations, personal service corporations (PSCs), and trusts that need to adopt, change, or retain a specific tax year. The form must be filed by the due date of the federal income tax return for the first effective year and signed by the filer or their authorized representative. Additionally, it must be submitted to the Internal Revenue Service Center, and a user fee may be required for certain applicants requesting a letter ruling on a change in tax year.

Who Must File Form 1128?

Form 1128 is required to be filed by taxpayers who need to adopt, change, or retain a tax year. This includes partnerships, S corporations, personal service corporations (PSCs), and trusts. However, there are exceptions, such as corporations adopting their first tax year, corporations required to change their tax year to file a consolidated return with their new common parent, and newly formed partnerships adopting a required tax year or a 52-53-week tax year with reference to such required tax year, among others.

Form 1128 Tax Filing Deadlines and Due Dates

• For ruling requests to adopt, change, or retain a tax year, Form 1128 must be filed by the due date (not including extensions) of the federal income tax return for the first effective year.
• For automatic approval requests, the form must be filed by the due date of the return (including extensions) for the short period required to effect the change.
• For individuals filing to change to a calendar year, Form 1128 must be filed on or before the due date (including extensions) for filing the federal income tax return for the short period required to effect the change.
• For tax-exempt organizations, the form must be filed by the 15th day of the 5th calendar month after the end of the short period.
• Late applications filed within 90 days after the due date may be considered as timely filed when the applicant establishes that they acted reasonably and in good faith, and that granting relief will not prejudice the interests of the government.
• Applications filed more than 90 days after the due date are presumed to jeopardize the interests of the government and will be approved only in unusual and compelling circumstances.

Form 1128 Late Payment Penalty

Although there is not a specific late payment penalty amount, it is crucial to file Form 1128 within the specified deadlines to avoid potential issues with the IRS. In case of late applications, the IRS may consider them as timely filed under certain circumstances, but applications filed more than 90 days after the due date are presumed to jeopardize the interests of the government and will be approved only in unusual and compelling situations.

Step-by-Step Instructions for Form 1128

Here are the step-by-step instructions for filling out Form 1128:

1. Part I - Identifying Information: Provide the name, address, and taxpayer identification number (TIN) of the applicant. If the applicant is a foreign entity, enter the reference ID number instead of the TIN.
2. Part II - Type of Applicant: Check the appropriate box to indicate the type of applicant (partnership, S corporation, personal service corporation, or trust).
3. Part III - Type of Request: Check the appropriate box to indicate whether the request is for a ruling or for automatic approval. If the request is for a ruling, a user fee may be required.
4. Part IV - Current Tax Year: Enter the beginning and ending dates of the current tax year, and indicate whether it is a calendar year, fiscal year, or 52-53-week tax year.
5. Part V - Requested Tax Year: Enter the beginning and ending dates of the requested tax year, and indicate whether it is a calendar year, fiscal year, or 52-53-week tax year.
6. Part VI - Short Period Tax Return: Provide the beginning and ending dates of the short period tax return required to effect the change in tax year, and indicate whether it is a calendar year, fiscal year, or 52-53-week tax year.
7. Part VII - Explanation of Request: Explain the reasons for the request to adopt, change, or retain a tax year. If the request is for a ruling, provide additional information as required by the applicable revenue procedure.
8. Part VIII - Additional Information for Ruling Requests: If the request is for a ruling, answer the questions in this section and provide any additional information required by the applicable revenue procedure.
9. Part IX - Signature: The form must be signed by the filer or their authorized representative. If the applicant is a corporation, the form must be signed by an officer; if a partnership, by a general partner; if a trust, by a trustee; and if an S corporation, by an officer or shareholder.

Remember to review the form for accuracy and completeness before submitting it to the Internal Revenue Service Center.

How to Submit Form 1128

To submit Form 1128, first determine if you are required to file the form. If so, obtain the form, read the instructions, and fill it out accordingly. Then, submit the form by the due date to the appropriate IRS Service Center. Ensure eligibility, be aware of deadlines, and provide necessary signatures and additional documentation. A user fee may be required for certain applicants requesting a letter ruling on a change in tax year.

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