(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.
Cited in 4 Tax Court opinions, 1 order, and 0 briefs.
Current through Pub. L. 119-102 (2026-07-12).
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