Need to change your business’s fiscal year? You might need a “Sample Letter to IRS for Change of Fiscal Year.” This letter formally requests the IRS to adjust your tax year. Businesses often need this when aligning with industry standards or improving financial reporting.
The process can seem daunting. Don’t worry. We’ve got you covered. We’ll share sample letters. These are templates you can adapt. They simplify writing your own letter to the IRS.
Our examples cover various scenarios. You can easily customize them. Get ready to make the process easier. Let’s dive in and get your fiscal year change started!
Sample Letter To Irs For Change Of Fiscal Year
[Your Name/Business Name]
[Your Address]
[City, State, ZIP Code]
[Date]
Internal Revenue Service
[IRS Address]
[City, State, ZIP Code]
**Subject: Request for Change of Fiscal Year**
Dear Internal Revenue Service,
This letter is to formally request a change in our fiscal year. We are currently operating on a fiscal year ending [Current Fiscal Year End Date]. We wish to change our fiscal year to end on [Proposed Fiscal Year End Date].
The reason for this change is [Explain Reason for Change – e.g., to better align with industry practices, to improve financial reporting efficiency, etc.].
We understand that this change requires approval from the IRS. We confirm that we meet all the necessary requirements for this change as outlined in IRS regulations.
We kindly request your approval for this change. We are available to provide any additional information or documentation needed to support our request.
Thank you for your time and consideration.
Sincerely,
[Your Name/Title]
[Your Phone Number]
[Your Email Address]
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How to Write Letter To IRS For Change of Fiscal Year
Subject Line: Capturing Attention
The subject line is your opening gambit. It should be succinct and immediately telegraph the letter’s purpose. Don’t be oblique; be direct.
- Example: “Request for Fiscal Year Change – [Your EIN or SSN]”
- Another option: “Application for Fiscal Year Alteration – [Your Business Name]”
Salutation: Addressing the Inevitable
Formality reigns here. Avoid being too chummy; respect is paramount. Err on the side of caution.
- Preferred: “Dear Internal Revenue Service,”
- Acceptable: “To Whom It May Concern:” (use sparingly, only if you absolutely cannot identify a specific recipient)
Introduction: Setting the Stage
The introduction divulges your identity and the core request. Transparency is crucial. Be upfront and avoid circumlocution.
- State your name (or business name), EIN/SSN, and current fiscal year-end.
- Clearly articulate your request to change the fiscal year-end date.
- Concise Example: “I am writing on behalf of [Your Business Name], EIN [Your EIN], to formally request a change in our fiscal year-end from [Current Date] to [Proposed Date].”
Body Paragraph 1: Justification and Rationale
This is where you elucidate the ‘why.’ The IRS needs a cogent rationale for your request. Vague notions won’t suffice; demonstrate a legitimate business purpose.
- Explain the business reasons for the change. Examples include aligning with an industry standard, conforming with a parent company’s fiscal year, or improved financial reporting.
- Substantiate your reasoning with concrete examples. Avoid abstract pronouncements.
- Example: “This change will synchronize our fiscal year with that of our parent company, [Parent Company Name], streamlining consolidated financial reporting and improving operational efficiency.”
Body Paragraph 2: Affirmations and Assurances
Provide assurances that the change won’t be used for tax avoidance. This is a critical juncture. Alleviate any IRS apprehensions proactively.
- Explicitly state that the change is not motivated by tax avoidance.
- Affirm that you will adhere to all relevant tax regulations and reporting requirements under the new fiscal year.
- Example: “This change is solely for business reasons and is not intended for, nor will it result in, any avoidance of federal tax obligations. We affirm our commitment to complying with all applicable tax laws under the revised fiscal year.”
Supporting Documentation: Fortifying Your Position
While not always mandatory, including supporting documents can bolster your application. Think of it as providing irrefutable corroboration.
- Include any relevant documentation that supports your rationale, such as board resolutions, agreements with parent companies, or industry analysis reports.
- Clearly list each document included in an accompanying attachments section.
- Example: “Attached please find: 1) Board Resolution approving the fiscal year change; 2) Letter from [Parent Company Name] supporting the alignment of fiscal years.”
Closing: A Cordial Farewell
End on a professional note. Exhibit courtesy and provide contact information for follow-up. Succinctness still matters.
- Express gratitude for their consideration.
- Provide your contact information (phone number and email address).
- Sign off with a formal closing.
- Example: “Thank you for your time and consideration. Please do not hesitate to contact me at [Your Phone Number] or [Your Email Address] if you require further clarification. Sincerely, [Your Name/Title]”
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Frequently Asked Questions: Changing Your Fiscal Year with the IRS
Changing your business’s fiscal year requires adherence to specific IRS guidelines. This FAQ section addresses common inquiries regarding the process of requesting a fiscal year change.
1. What form do I use to request a change in accounting period?
You must file Form 1128, Application to Adopt, Change, or Retain a Tax Year, with the IRS.
2. What are the eligibility requirements for changing my fiscal year?
Generally, you must demonstrate a substantial business purpose for the change and meet specific conditions outlined in IRS regulations.
3. Where do I send Form 1128?
The filing location depends on the type of entity and is detailed in the instructions for Form 1128, available on the IRS website.
4. Is there a deadline for filing Form 1128?
Yes, Form 1128 must typically be filed on or before the 15th day of the second calendar month following the close of the short period required to effect the change.
5. What happens after I submit Form 1128?
The IRS will review your application and notify you of their decision. Approval is not guaranteed and depends on meeting IRS requirements.