California Business Portal

How does my corporation change its accounting period?

Your corporation should receive federal approval prior to receiving approval from Franchise Tax Board (FTB).

If your corporation has prior federal approval to change its accounting period or is required by federal law to change, then when you file with FTB, attach the following information:
  • A copy of the Federal Form 3115, Application for Change in Accounting Method or 1128, Application to Adopt, Change or Retain a Tax Year.
  • A cover letter explaining what is being done and why.

If you are only requesting an accounting period change with the State of California, then you must send the Federal Form 3115 or 1128 along with a cover letter stating what is being done and why you are changing your accounting period. 
Mail to:

ATTN: CHANGE OF ACCOUNTING PERIOD
FRANCHISE TAX BOARD
PO BOX 1998
RANCHO CORDOVA CA 95741-1998 

In most cases, you must file a short-period tax return when you change your accounting period.

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