26 U.S.C. § 1378
§ 1378. Taxable year of S corporation
No plain-English explainer yet. Below is the official text. Explainers are being added section by section.
The law as written
Current through Public Law 119-102. Amendment notes omitted.
(a) General rule
For purposes of this subtitle, the taxable year of an S corporation shall be a permitted year.
(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.