{"identifier":"/us/usc/t26/s1378","title":26,"num":"\u00a7\u202f1378.","heading":"Taxable year of S corporation","text":"\u00a7\u202f1378.\nTaxable year of S corporation\n(a)\nGeneral rule\nFor purposes of this subtitle, the taxable year of an S corporation shall be a permitted year.\n(b)\nPermitted year defined\nFor purposes of this section, the term \u201cpermitted year\u201d means a taxable year which\u2014\n(1) is a year ending December 31, or\n(2) is any other accounting period for which the corporation establishes a business purpose to the satisfaction of the Secretary.\nFor purposes of paragraph (2), any deferral of income to shareholders shall not be treated as a business purpose.","url":"https://projectusc.org/usc/t26/s1378.html","content":[{"t":"sec","id":"/us/usc/t26/s1378","children":[{"t":"num","text":"\u00a7\u202f1378."},{"t":"heading","text":"Taxable year of S corporation"},{"t":"subsec","id":"/us/usc/t26/s1378/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"General rule"},{"t":"content","children":[{"t":"p","text":"For purposes of this subtitle, the taxable year of an S corporation shall be a permitted year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s1378/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Permitted year defined"},{"t":"chapeau","text":"For purposes of this section, the term \u201cpermitted year\u201d means a taxable year which\u2014"},{"t":"para","id":"/us/usc/t26/s1378/b/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" is a year ending December 31, or","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1378/b/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" is any other accounting period for which the corporation establishes a business purpose to the satisfaction of the Secretary.","tail":"\n"}],"tail":"\n\n"},{"t":"continuation","text":"For purposes of paragraph (2), any deferral of income to shareholders shall not be treated as a business purpose.","tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}