Our S corp wants a September year-end. Can we use it without a tax-year election or other approval?
An S corporation generally uses its required tax year unless a permitted alternative applies.
By AE Tax Advisors Team · Updated October 29, 2026
An S corporation generally uses its required tax year unless a permitted alternative applies. A Section 444 election can allow a limited deferral subject to conditions and possible required payments; other fiscal years may require a valid business-purpose basis or approval. Changing the books alone does not establish permission.
A specific business-owner situation
An S corporation wants a September year-end to match its busy season. It must test a permissible election or other procedure rather than submit a short return and assume acceptance.
Illustrative example, not a client result.
What to establish before filing
- Identify the required year.
- Review Section 444 eligibility and deferral limits.
- Coordinate the election required payments and ongoing filings.
Which fact changes the answer?
A valid Section 444 year differs from a business-purpose year obtained under another procedure. The requirements and continuing obligations are different.
A mistake to avoid
Do not treat a fiscal year as approved because software permits selecting it.
Records that support the decision
- Existing tax-year history.
- Election documents.
- Business-purpose and required-payment calculations.
The decision to document
Document the chosen legal path and calendar any Form 8752 or related obligation before implementing the year-end change.
Business-owner tax planning and preparation scope · Discuss advisory scope with AE
Related questions
- Our corporation changed year-end and filed a short return. Can we calculate tax using ordinary full-year brackets and limits?
- Can our business use a 52–53-week tax year simply because our inventory system closes on Sundays?
Sources and editorial context
General educational information prepared with AI assistance. No individual professional review is claimed. Apply the relevant tax-year rules to the actual records. Editorial policy · AI disclosure.