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Most taxpayers default to a calendar year (January 1 to December 31), mainly because the IRS says so. But heres where estates get special treatment: unlike individuals, an estate can choose a fiscal yearany 12-month period that ends on the last day of any month except December.
Taxpayers now must make these UNICAP method changes under the nonautomatic procedures, which require an earlier filing date (generally by the end of the tax year), a filing fee (currently $11,500), and IRS discretion to approve the change (particularly when the taxpayer is changing from a permissible method).
How much is the user fee for an exemption application? The user fee for Form 1023 is $600. The user fee for Form 1023-EZ is $275. The user fees must be paid through Pay.gov when the application is filed.
There are, however, a few important items to think about: Form 1128. If the organization changed its year-end within the past 10 years, then it must file Form 1128 with the IRS to change it again.
The IRS private letter ruling (PLR) user fee depends on the gross income of the taxpayer: For taxpayers with gross income under $250,000, the fee is $3,000. For taxpayers with gross income greater than $250,000 and less than $1 million, the fee is $8,500.

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A short tax period is an accounting period of less than 12 months, and usually occurs when an organization starts operations, changes its accounting period or terminates. For example: In the year it was created, Organization EO adopts a calendar year accounting period.
85-58 (Form 1128, Part II, Section D), file by the 15th day of the 5th calendar month after the end of the short period. Generally, an application filed after the appropriate due date stated above is considered late.
Applicants filing Form 1128 to request a ruling on a change in tax year under Rev. Proc. 93-1 must pay a $200 user fee ($150 for exempt organizations). A separate $200 user fee is also required for applicants (including applicants requesting expeditious approval under Rev.

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