26 USC 1378 - Taxable year of S corporation

U.S Code last checked for updates: Nov 22, 2024

§ 1378.

Taxable year of S corporation

(a)

General rule

(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.

(Added Pub. L. 97–354, § 2, Oct. 19, 1982, 96 Stat. 1685; amended Pub. L. 98–369, div. A, title VII, § 721(m), (q), July 18, 1984, 98 Stat. 969, 970; Pub. L. 99–514, title VIII, § 806(b), Oct. 22, 1986, 100 Stat. 2363.)

cite as: 26 USC 1378