When a taxpayer has a tax year of less than 12 months, the taxpayer must always annualize income.

Question

Quizplus · Accepted Answer

A taxpayer with a tax year of less than 12 months (a short tax year) may need to annualize income for certain purposes, such as calculating estimated taxes, but it's not a blanket requirement for all tax reporting purposes. The need to annualize depends on specific tax rules and the taxpayer's situation.

When a Taxpayer Has a Tax Year of Less Than