1120-US: Determining a 52/53 week year-end (FAQ)

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Question

How does UltraTax/1120 determine a valid 52/53 week year-end?

Answer

Per IRC Regulation 1.441-2(a)(2), in the case of a taxable year that ends on the same day of the week, and that last occurs in a calendar month, the year will always end within the month and may end on the last day of the month or as many as six days before the end of the month.

In the case of a taxable year that ends on the same day of the week and that falls nearest to the last day of the calendar month, the year may end on the last day of the month or as many as three days before or three days after the last day of the month.

UltraTax/1120 generates a critical diagnostic if code 1 or 2 is entered in the Type of Type of 52-53 week year field in Screen 1120 and the date in the Tax year ending field in Screen 1120 does not fall within the guidelines of IRS Regulation 1.441-2(a)(2).

If this is the first year the corporation has a 52-53 week taxable year, enter X in the Print 52-53 week election field in Screen 1120.

Related topic: 1120 frequently asked questions

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