Get Notice 99-19 - Accounting Period Guidance. Accounting Period Guidance

Generally, taxpayers filing a version of Form 1040 use the calendar year. An individual can adopt a fiscal year if the individual maintains his or her books and records on the basis of the adopted fiscal year.

Usually, the accounting period follows the Gregorian calendar year that consists of twelve months starting from January 1 to December 31.

A calendar year with respect to accounting periods indicates that an entity begins aggregating accounting records on the first day of January and subsequently stops the accumulation of data on the last day of December. This annual accounting period imitates a basic 12-month calendar period.

Transactions that fall within a given date range form part of the statements or reports for that accounting period. An accounting period, or reporting period, is often 12 months. There may be different accounting periods for various business tasks.

An accounting period, or reporting period, is often 12 months. There may be different accounting periods for various business tasks. For example, you may have one for income tax, another for sales tax, and still others for business reporting.

If your business is considered a sole proprietor or is taxed as a sole proprietorship, your fiscal year is automatically the calendar year. If not, select the end of any quarter to be your fiscal year end. Seasonal businesses typically end their fiscal year right after they receive the most business.

It cannot be longer than 12 months. This information is found in the Filing Information chapter of Publication 17, Your Federal Income Tax.