Understanding Your CP286 Notice
We send this notice when we approve Form 8716, Election To Have a Tax Year Other Than a Required Tax Year.
What you need to do
- Timely file your annual business income tax returns (Form 1065, U.S. Return of Partnership Income or Form 1120S, U.S. Corporation Income Tax Return) on the approved fiscal tax year.
- Timely file Form 8752, Required Payment or Refund Under Section 7519, annually (due by May 15th).
- Timely make all payments Form 8752 requires.
You may want to
- Retain this notice in your permanent records
- Visit Where to File Your Taxes (for Form 8752)
- Review the instructions for Form 8752 on page 3 of the form
Answers to Common Questions
What should I do if I want to change my tax year for Form 1065 or Form 1120S to a calendar year filing?
File a final Form 8752, which will terminate your section 444 election. If you have a credit on your account, you must file a final Form 8752 for us to refund the payments to you. You must also file a short period business income tax return with your final Form 8752 (Form 1065 or Form 1120S) ending December 31.
Do I need to file Form 8752 when I don’t owe a payment?
Yes. You must file Form 8752 each year the section 444 election is in effect, even if no payment is due.
What if I am no longer required to file a Form 1065 or Form 1120S? Do I need to ask the IRS to terminate my election?
Yes. You must send a final Form 1065 or Form 1120S, along with a final Form 8752.
Are there any consequences if I don’t file Form 8752 or send in my payment when I file?
Failure to file or failure to pay will result in the termination of your fiscal year election.