stephanie-m
Level 2
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IRonMaN
Level 15
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https://www.irs.gov/pub/irs-pdf/f1128.pdf

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
stephanie-m
Level 2
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I adopted a tax year in prior year. I need pro connect to show accurate fiscal years on the 2017 return.

sjrcpa
Level 15
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10/1/2016-9/30/17 is 2016 to the IRS.


ex-AllStar
stephanie-m
Level 2
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our 2016 was the first year and filed as a short tax year 1/10/16-9/30/16. 

abctax55
Level 15
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"..need pro connect to show accurate fiscal years on the 2017 return."

Then you need to enter the correct dates.

Are you a professional tax preparer or are you using PTO for your own return?

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stephanie-m
Level 2
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IRS accepted fiscal year in the first year. I even have a letter showing my month end and when my first return was due. 

Whats confusing me is I filed a 2016 return already, per the IRS due date given to me, so its fine to file two 2016 returns?

I am doing it for my own business, I also am a CPA but I am not a tax preparer. I assist the tax associates at my firm as well. My background has nothing to do with the question though.

What its looking like is I would have to do a 2016 and cannot file a 2017 with this fiscal date range in pro connect . and probably amend 2016 and file a 2015... darn it. 

Thanks for the help.

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itonewbie
Level 15
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As Susan says, this would be tax year 2016 from the IRS' perspective.  In PTO, you choose the fiscal period based on the month you enter for fiscal year.

  1. Click on General > Client Information > Miscellaneous;
  2. Scroll down to the Miscellaneous Info section; and
  3. Enter 9 on the line for Fiscal Year End (MM).
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George4Tacks
Level 15
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There is a difference between being able to e-file two 2016 tax returns with different FYE and being able to FILE two 2016 tax returns with different FYE.
This 2nd one needs to be filed on PAPER.

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Rick19744
Level 3
Level 3
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I agree that you need to amend the initial tax return as that should have been filed on a 2015 tax return.  I would include a letter of explanation as this will clearly be confusing to the IRS.

Regulation 1.441-1(a)(2) states that, except in instances related to a 52-53 week year (covered in 1.441-2), a taxable year may not cover a period of more than 12 calendar months.  If you would file another 2016 return, you would clearly exceed this 12 calendar month rule.  That unfortunately means amending the return.

While the IRS letter may have indicated the due date of the return, which is correct, I would be surprised if the letter indicated that actual tax year of the form to use in your situation.

 

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sjrcpa
Level 15
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The first short year fell entirely within 20016 so it correctly was a 2016 tax return. 


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Rick19744
Level 3
Level 3
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While the short period may have only encompassed 2016, it was for the elected period 10/1/2015 thru 9/30/2016 since they were electing a fiscal period.

As such, the return should have been filed on a 2015 tax return. 

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sjrcpa
Level 15
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No. OP said it was a "short tax year 1/10/16-9/30/16."  No 2015 days in there.


ex-AllStar
Rick19744
Level 3
Level 3
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No argument that it is a short period.  However, it is for a short period related to the elected period of 10/1/2015 through 9/30/2016.

If the taxpayer files another 2016 tax return, the total months for filing a 2016 return will exceed the 12 month rule of the noted regulation.

It is doubtful that we will agree, but I am satisfied with my opinion that the original return was filed on a wrong year tax return.  Anything else, and 2016 will have more than 12 months of reporting.

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sjrcpa
Level 15
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I'll agree to disagree.


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abctax55
Level 15
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"..My background has nothing to do with the question though."

But it does have something to do with how the volunteers who keep this forum afloat choose to answer.

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View solution in original post

itonewbie
Level 15
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@stephanie-m wrote:

I am doing it for my own business, I also am a CPA but I am not a tax preparer. I assist the tax associates at my firm as well.


Not sure why you'd choose to use PTO to prepare your business' return.  This is a software that's designed for tax professionals.  Using a professional tax software also means that your business' return will have to be filed on paper unless you have an EFIN.

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stephanie-m
Level 2
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all amazing answers. I am so thankful for this forum and Thank you all for the help!