Form 1128 is the application you file with the IRS to adopt, change or retain a tax year, for example moving a company from a calendar year to a fiscal year ending March 31. Part II is for automatic approval, which needs no user fee. If you don't qualify for automatic approval, Part III is a ruling request, which does need a user fee.
The rules below come from the November 2017 Instructions for Form 1128 and the October 2014 form, which are still the versions the IRS publishes, as of October 2026. The IRS has since updated the Part III mailing address for exempt organizations in a notice printed at the front of the form.
Who files Form 1128
Generally, anyone who wants to adopt, change or retain a tax year must file it. Partnerships, S corporations, personal service corporations and trusts may be required to file it to adopt or keep a particular year. For a consolidated group, the common parent files one Form 1128 for the whole group and answers the questions for each member.
Some don't file it at all. A corporation adopting its first tax year doesn't, nor does an estate adopting its first tax year. Newly married individuals changing to their spouse's tax year so they can file jointly follow Regulations section 1.442-1(d) instead.
Groups, foreign subsidiaries and other special cases
- If a consolidated group wants to change its year under Rev. Proc. 2006-45, every member of the group must meet the revenue procedure's requirements.
- If a controlled foreign corporation or 10/50 corporation has no US trade or business, its controlling domestic shareholders file Form 1128 on its behalf, by the due date including extensions of their own return for the year in which the foreign corporation's first effective year ends.
- A corporation that must change its year to join a consolidated return with a new common parent doesn't file Form 1128.
- An employee plan or trust changing its plan or trust year uses Form 5308 instead.
Automatic approval or a ruling request
| If the applicant is | Part II section | Revenue procedure |
|---|---|---|
| A corporation, other than an S corporation or PSC | Section A | Rev. Proc. 2006-45 |
| A partnership, S corporation, PSC or trust | Section B | Rev. Proc. 2006-46 |
| An individual changing to a calendar year | Section C | Rev. Proc. 2003-62 |
| A tax-exempt organization | Section D | Rev. Proc. 85-58 |
If you can use one of these automatic rules and you file on time, you complete Parts I and II only, and no user fee is required. If you don't qualify, you must request a ruling under Part III and pay the user fee that goes with ruling requests.
When Form 1128 is due
| Request | Deadline |
|---|---|
| Automatic approval under Section A or B | Due date of the return, including extensions, for the short period needed to make the change |
| Individual under Section C | On or before the due date, including extensions, of the return for the short period |
| Exempt organization under Section D | 15th day of the 5th calendar month after the short period ends |
| Ruling request (Part III) | Due date, not including extensions, of the return for the first effective year, and not before the day after that year ends |
The short period is the part-year that bridges old and new years. The IRS example: a corporation with a December 31 year that asks for a new year ending March 31 has a short year running from January 1 to March 31. You generally can't file before that short period ends.
What if you're late?
An application filed after its due date is late. But one filed within 90 days of the due date may be treated as timely if you show that you acted reasonably and in good faith, and that granting relief won't prejudice the government's interests. Applications filed more than 90 days late are presumed to jeopardize the government's interests and are approved only in unusual and compelling circumstances.
Either way, a late request needs an extension request under Regulations section 301.9100-3. That counts as a ruling request, so it needs a user fee, and it's subject to public inspection under section 6110. In other words, missing the deadline can turn a free automatic change into a paid one.
Where to send it
For automatic approval under Part II, send Form 1128 to the IRS service center where you file your income tax return, marked Attention: Entity Control, and attach a copy to the return you file for the short period. Don't send an automatic request to the Part III ruling addresses. Ruling requests go, with the user fee, to the address in the Part III instructions, and exempt organizations should use the updated address printed at the front of the form.
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Filing it, step by step
- Work out the short period between the old and new tax years.
- Check which Part II section fits you, and whether you meet its revenue procedure.
- Complete Part I and the right section of Part II, or Part III if you need a ruling.
- File by the deadline for that route, not earlier than the end of the short period.
- Attach a copy to the short-period return, such as a Form 1065 or Form 1120-S.
The verdict
Form 1128 is cheap and quick if you plan it: pick the new year, check you fit an automatic revenue procedure and file with the short-period return. The cost comes from leaving it late, because past the deadline the same change needs a ruling, a user fee and the IRS's discretion.
Frequently asked questions
What is Form 1128 used for?
To request a change in tax year, or to adopt or retain a tax year. Partnerships, S corporations, personal service corporations and trusts may be required to file it.
Is there a user fee for Form 1128?
Not for automatic approval under Part II. A ruling request under Part III, and an extension request for a late application, require a user fee.
When is Form 1128 due for automatic approval?
For Sections A and B, by the due date of the return, including extensions, for the short period required to make the change.
What if I file Form 1128 late?
An application filed within 90 days of the due date may be treated as timely if you acted reasonably and in good faith and relief won't prejudice the government. Later applications are approved only in unusual and compelling circumstances.
Does a new corporation need Form 1128 for its first year?
No. A corporation adopting its first tax year doesn't file Form 1128.
