Accounting Periods
Not what you're looking for?
Wilson Corporation currently uses the calendar year as its financial and tax annual accounting period. Management wishes to changes this to a fiscal year beginning October 1st and going through September 30th. Look at the tax law criteria that would be required to make this change and summarize them in a few paragraphs. Based on this, explain why the Wilson Corporation may or may not want to make this change.
Purchase this Solution
Solution Summary
This solution looks at a case where a corporation wishes to alter the dates of its fiscal year and explains whether or not this is wise and will be permitted.
Solution Preview
For a calendar year entity to change to a fiscal year, the company must petition the IRS for a change of accounting period. This is not an automatic change. The entity must complete and file Form 1128 to request the change, and the change will only be approved when a substantial business purpose exists. Facts and circumstances must be presented with a timely filed submission.
Part of the review by IRS will include the tax consequences of the change, but there are also non-tax circumstances that will be reviewed. A common example of a type of change that will probably be confirmed is conformity with the annual cycle of business. For example - a reason ...
Purchase this Solution
Free BrainMass Quizzes
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.