California Business Portal

What circumstances generally require filing a short-period tax return?

What circumstances generally require filing a short-period tax return?

The circumstances for filing a California “short-period” tax return are when: 
  • A federal return for a period of less than 12 months is required. 
  • There is an accounting period change. In such case, the short-period begins on the day after the close of the former taxable year and ends at the close of the day before the first day of the new taxable year. 
  • A business entity exists for only part of what would otherwise be its taxable year.
  • An S corporation election is terminated during its year.
The corporation must file two short-period tax returns. Each short-period tax return is deemed a separate tax year, and both will generally be subject to the minimum franchise tax. 

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