Change in Tax Year, Non Profit

Hello all, I need a bit of guidance with this one.

Non-Profit Org, 501(C)(3), wants to change their tax year from FY ending 02/28/2018 to a calendar year end.

Reading the 1128 instructions has me a bit confused (not uncommon). Do I have it correct in assuming it is too late to change their most recent return due July 15th? FYI, I did file an extension.

If that assumption is correct, is it also correct they will have 2 short year returns, 1st Return period; beginning 03/01/2018 through the date IRS grants the change, 2nd Return period, beginning the day after the change was granted by IRS through 12/31/2018?

I've never done one of these, so any guidance is most appreciated! And, as Elvis said, "Don't be cruel...."

According to the 1128 instructions,

Exempt Organizations
An organization exempt under section 501(a) does not file Form 1128 unless the organization has changed its tax year at any time within a 10-calendar-year period, and the organization has had an annual filing requirement during that 10-year period (see Rev. Proc. 85-58, 1985-2 C.B. 740).

. From https://www.irs.gov/pub/irs-pdf/i1128.pdf

Based on the above, the following advice seems wrong.

Filing a Short-Year Form 990
If the organization changes its accounting period, it must file a Form 990 for the short period resulting from the change and write “Change of Accounting Period” at the top of this short-period return.

Timing Your Change in Fiscal Year
According to the Cullinane Law Group, a law firm in Austin, Texas serving nonprofits and social enterprises, “If the nonprofit wants to change its fiscal year, it must file IRS Form 1128 by the 15th day of the 5th month following the close of the new fiscal year. Example: Current fiscal year runs from January 1 to December 31; new fiscal year to run from October 1 to September 30. Form 1128 is due on February 15th of the following year.”

. From https://rinehimerbaker.com/blog/nonprof ... -year-end/.

Thank you Len. I did read the 10-calendar year period rule, and that makes sense.

So, in my scenario, it appears the 15th day of the 5 month following the close of the new fiscal year means the most recent return must be filed as usual (by July 15th) and the election to change the calendar year end to 12/31/2017 has already passed. In other words, FY 17 would be business as usual and too late for the calendar year election.

Thus, if I am getting this right, the Form 1128 and the 2018 return will be due by May 15, 2019. And, would this be a short year return beginning March 1, 2018 through December 31, 2018?

Pardon my naivete with this subject. I'll hold books in my outstretched hands and have my wife cane me if I am wrong!

I read that no Form 1128 is needed, and there will be only one short period return, From 3/1/18 through 12/31/18.

Ahhh, re-read the 10 year rule Dave. If it was a snake, it would've bitten me!

Got it Len, thank you!