1120 E-file: Special Return Types: Short Period Returns

Short Period Returns

In certain situations, a taxpayer might need to file a short period return before the IRS has begun accepting returns for that year, or before software has been released for that year. In such cases, the current year software can be used as long as the actual beginning and ending dates of the short period are used. The return must reflect the laws applicable to the short year return even though the software being used was developed for a prior year return.

When a short period corporate return is being filed, in some cases the regulations require the taxpayer to attach Form 1128, provide an explanation why the short period return is being filed, or cite the applicable Revenue Procedure.

If Form 1128 is used, attach it to the top level of the return as a PDF file and describe it as: Form 1128 for Short Period Return.

If an explanation is required, it can be submitted in the General Dependency XML document or in a PDF file. Provide the regulatory citation and explanation in a General Dependency PDF file with the description: Short Period Return Explanation.

To prevent processing delays, IRS has added to the 1120, 1120S, and 1120-F schema indicators of the valid reasons for filing a short period return. If the reason for a short period return is not listed, use the General Dependency to indicate the reason why a short period return is being filed.

Setting Up Short Year Returns in the Tax Application

Select Organizer > General information > Basic Return Information > Return Information tab, and then scroll to the Dates section.
Select the Short year return check box.
Enter the beginning and ending fiscal year dates. Be sure that other dates within the return are correct for the short-year return. For example, sales of capital assets should have the correct year for date sold.
If applicable, also select one of the Short Year Period Indicators, such as Section 1398, from the drop-down list on this Organizer screen.

E-file/1120_short_period_returns.htm/TY2020

Last Modified: 03/20/2020

Last System Build: 09/13/2021