26 USC 1378 - Taxable year of S corporation

U.S Code last checked for updates: Oct 22, 2026

§ 1378.

Taxable year of S corporation

(a)

General rule

(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.

(Added Pub. L. 97–354, § 2,

cite as: 26 USC 1378