A fiscal year that ends on the same day of the week, either on the final day of the 52nd or 53rd week of the year, is known as a 52-53-week tax year. Businesses that have a separate fiscal year than the calendar year, which closes on December 31, sometimes employ this type of tax year. A business may decide to employ a 52–53-week tax year that ends on a particular day each year as opposed to a calendar year. This enables the business to match its operating year, which is frequently different from the calendar year, with its fiscal year.
Businesses that employ a 52- or 53-week tax year must file their tax returns in accordance with this requirement. The 15th day of the third month after the end of the fiscal year is when businesses with 52-53 week tax years must file their tax returns. For instance, if a business’ fiscal year ended on March 31, the due date for filing tax returns would be June 15.
Let’s now answer the pertinent queries. Can you electronically submit Form 2553? Yes, businesses may submit their Form 2553 electronically to the IRS. The S corporation status election is made using this form, which enables the company to be taxed more like a partnership than a corporation.
Who must give their approval for the S election on Form 2553? The S election must have the approval of all shareholders who are qualified to participate in the S corporation on Form 2553. All stockholders at the time the S company status election is made are included in this.
In conclusion, a fiscal year that concludes on the same day of the week, whether it be the final day of the 52nd or 53rd week of the year, is referred to as a 52-53 week tax year. Businesses with fiscal years that differ from calendar years frequently employ it. Businesses that employ a 52- or 53-week tax year must file their tax returns in accordance with this requirement. The S election on Form 2553 must have the approval of each qualified shareholder, and the form can be submitted and signed electronically.