SoTired, Inc., a C corporation with a June 30 year-end, elects S corporation status this year. Assuming no special elections, SoTired, Inc. will continue to use a June 30 year-end as an S corporation.
S corporations are generally required to adopt a calendar year end.

Question

Quizplus · Accepted Answer

While S corporations are generally required to adopt a calendar year-end, the IRS allows for a short tax year when a corporation converts to S corporation status during the tax year. So, in this case, SoTired, Inc. may continue to use its June 30 year-end as an S corporation, as long as it files a short tax year return for the period from July 1 to December 31 of the year it elects S corporation status.