Statute · United States Code
26 U.S.C. § 1378 — Taxable year of S corporation
26 U.S.C. § 1378
- Type
- Statute
- Source
- United States Code
- Jurisdiction
- Federal
- Date
- 2025-01-06
- Topic
- litigation
For purposes of this subtitle, the taxable year of an S corporation shall be a permitted year. 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.
For purposes of this subtitle, the taxable year of an S corporation shall be a permitted year. 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.