26Title 26The US tax code, read & explained

26 U.S.C. § 1378

§ 1378. Taxable year of S corporation

92 words · amended 2 times · cited by 1 other sections

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No plain-English explainer yet. Below is the official text. Explainers are being added section by section.

History

Added in 1982 by the Public Law 97-354. Last changed October 22, 1986 by the Tax Reform Act of 1986.

Every change, newest first (3)
  1. October 22, 1986Tax Reform Act of 1986
  2. July 18, 1984Deficit Reduction Act of 1984
  3. October 19, 1982Public Law 97-354 · added this section

The law as written

Current through Public Law 119-102. Amendment notes omitted.

Structure

  1. (a) General rule
  2. (b) Permitted year defined
(a) General rule

For purposes of this subtitle, the taxable year of an S corporation shall be a permitted year.

(b) Permitted year defined

For purposes of this section, the term “permitted year” means a taxable year which—

(1)

is a year ending December 31, or

(2)

is any other accounting period for which the corporation establishes a business purpose to the satisfaction of the Secretary.

For purposes of paragraph (2), any deferral of income to shareholders shall not be treated as a business purpose.