Hello!
I don't have many FYE tax clients. I have an S-Corp that operates a small school. We just filed their 2022 12/31 S-Corp return. They approached me about changing to a fiscal year of 7/1 - 6/30. They want to do this because it coincides with their school year and will be easier from an internal reporting standpoint as per the controller.
(1) What is the process and timing of doing this? I've read Rev Proc 2006-46 and I believe I will have to do the election through Form 1128.
(2) We will have to file a stub return for 1/1 - 6/30. Does this get reported on SH 2023 Tax Return?
(3) If the election is approved, does the 7/1/23 - 6/30/24 1120S K-1 go on the shareholder's 2024 tax return?
(4) Do we have grounds for automatic approval through Form 1128?
(5) What are the due dates for the extension and return based on the above - 9/15 and 3/15 I presume?
(6) Anything else I'm missing that should be considered?