Changing a fiscal year to be a calendar year

Started by EdithM1 • 2 replies • 909 views

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EdithM1 (Colorado)
Posts: 1

Posted:

Our manager indicated the HOA fiscal year can be changed at an
Annual Meeting but has not mentioned how to change it with the
State of Colorado or IRS. Are there forms to be submitted and approved by
either the state or IRS, as well as ( prior or after) vote by the HOA owners?
Can the owners just change the fiscal year dates without recourse?

NpS (Pennsylvania)
Posts: 4,216

Posted:

Let's say you want to change the start of your fiscal year from Sep 1 to Jan 1.

Here's what happens:

1. You file returns for your old fiscal year: Sep 1, 2018 to Aug 31, 2019.

2. You file returns for your new fiscal year: Jan 1, 2020 to Dec 31, 2020.

But if that's all you did, there would be a gap from Sep 1, 2019 to Dec 31, 2019? You also have to file returns for that period. It's called the Short Year.

So ... in the year that you make the change, you actually file 2 returns instead of 1. One to cover the Short Year and the other to cover a full year under your new fiscal calendar.

To see what procedures you need to follow, see IRS Form 1128.

Sikubali jukumu. Read all posts at your own risk.

RichardP13 (California)
Posts: 3,868

Posted:

Typically, your fiscal year is stated in your Bylaws and I have to assume your need to amend them first.

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