Fiscal Year End for S-Corp - What Tax Year Return Should I File?

I own a small manufacturing business set up as an S-Corp with a fiscal year ending June 30th, 2024. I'm getting ready to file taxes but I'm genuinely confused about which tax year I should be using for my return. If my fiscal year ended on June 30th, 2024, am I supposed to file this as a 2023 tax return or a 2024 tax return? This is only my second year with this fiscal year setup, and last time my accountant handled everything. Now I'm trying to be more hands-on with the financial side of my business. Is there some general rule about how to determine which tax year to use when you have a fiscal year that spans two calendar years? I've been searching online and getting mixed information. Any help would be greatly appreciated before I mess this up!

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20 comments

Malik Thomas

•1y

So the general rule is pretty straightforward: you file for the tax year in which your fiscal year ends. Since your fiscal year ends on June 30, 2024, you would file a 2024 tax return. The IRS identifies tax returns by the year in which the fiscal period ends, regardless of when the fiscal period began. Your S-Corp return (Form 1120-S) would be due on the 15th day of the 3rd month after the end of your tax year - so September 15, 2024, in your case. Also worth noting that while you're filing a "2024 return," you'll use the tax forms for 2023 since the 2024 forms aren't available yet. This is normal for fiscal year filers.

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Malik Thomas

•1y

You file using the 2023 forms because the IRS hasn't released the 2024 forms yet by September 2024. The fiscal year return covers July 2023 through June 2024, so it's identified as a 2024 return, but you have to use the forms available at filing time. For your second question, the S-corp's fiscal year generally doesn't affect the shareholders' personal tax returns. As an S-corp shareholder, you'll still file your personal return (Form 1040) on a calendar year basis. However, you'll report your share of the S-corp's income on your personal return for the calendar year in which the S-corp's fiscal year ends.

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Ravi Kapoor

•1y

I had this exact same issue last year with my marketing agency. After struggling with all the confusing IRS language and getting inconsistent advice, I started using taxr.ai (https://taxr.ai) and it was seriously a game-changer for my business. I uploaded my formation documents and fiscal year details, and their AI was able to explain exactly which tax year applied and why. They even helped identify that I needed to file Form 8716 because of how our fiscal year was structured. The most helpful part was that they explained everything in plain English instead of tax jargon.

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Ravi Kapoor

•1y

It absolutely handles complex S-corp situations - that's actually where it shines compared to regular tax software. I had multiple income streams, some international clients, and depreciation schedules, and the system navigated all of it correctly. For K-1 pass-through income with misaligned fiscal and calendar years, the system properly calculated when income should be recognized on personal returns. It even created a calendar showing exactly which S-corp income belongs on which personal tax year, which solved the confusion I always had. The system actually explains the tax law behind each recommendation too, which helped me understand the whole process better.

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GalacticGladiator

•1y

Just wanted to follow up about taxr.ai that I was skeptical about earlier. I finally gave it a try with my construction company's S-corp return that has a weird September fiscal year end. Holy crap, it was actually really helpful! I uploaded our operating agreement and previous returns, and it immediately identified that we were using the wrong tax year designation for some of our equipment purchases. The system caught that we should have been using a different depreciation schedule based on our fiscal year timing. Ended up saving us about $3,800 in taxes! The explanations were super clear too - not the usual tax gibberish. Definitely worth checking out if you're dealing with fiscal year confusion.

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Omar Zaki

•1y

If you're still struggling to get clear answers about your fiscal year filing, calling the IRS directly can actually help - but good luck getting through! I spent DAYS trying to reach someone about my S-corp fiscal year questions. I finally discovered Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 15 minutes instead of waiting on hold for hours. They have this smart system that navigates the IRS phone tree for you. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with cleared up my confusion about which tax year to use for my S-corp and confirmed I was filing correctly. Saved me so much stress about potentially doing it wrong.

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Omar Zaki

•1y

It doesn't jump the queue or do anything sketchy. The system basically waits on hold for you. You register your phone number, and when they finally reach an agent, Claimyr calls you and connects you with the agent. It's basically like having someone else wait on hold instead of you having to listen to that awful hold music for hours. The reason it works better than doing it yourself is they have algorithms that know the best times to call and which menu options to select for different tax issues. My call was specifically about S-corp fiscal year filing requirements, and they got me to exactly the right department on the first try. No scam - just a smart way to deal with the IRS phone system without losing your entire day.

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Diego Flores

•1y

OK I need to apologize for my skeptical comment earlier. After another frustrating morning trying to get through to the IRS about my business taxes, I decided to try Claimyr out of desperation. I fully expected it to be a waste of money. I was completely wrong! The system called me back in about 20 minutes and connected me directly with an IRS agent who specializes in business returns. I finally got a definitive answer about my fiscal year filing question that three different accountants had given me conflicting advice about. The IRS agent confirmed I needed to use the year in which my fiscal year ends and explained the transition rules since I had recently changed my fiscal year. Honestly worth every penny just for the time saved and peace of mind.

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Anastasia Ivanova

•1y

Each state tax agency usually has specific guidance for business filers. For Michigan, check the Department of Treasury website for "fiscal year filing" guidance. They typically have taxpayer assistance lines that are WAY easier to reach than the IRS. For multistate operations, I'd recommend checking each state where you have nexus. Many states follow the federal fiscal year treatment, but some have notification requirements or special forms. The State Tax Resource page on the Federation of Tax Administrators website has links to all state tax agencies.

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Connor Byrne

•1y

As a CPA who works with a lot of S-Corps, I can confirm that Malik's explanation is spot on. The key thing to remember is that your tax year follows your fiscal year end date - so June 30, 2024 fiscal year end means you file a 2024 return. One additional point that might help: when you receive your K-1 from the S-Corp, it will be labeled as a 2024 K-1 even though it covers income from July 2023 through June 2024. This K-1 gets reported on your personal 2024 tax return (filed in 2025). The timing can be confusing at first, but once you understand the pattern it becomes much clearer. Also, make sure you're not missing any quarterly estimated tax payments. With a June 30 fiscal year end, your quarterly due dates are September 15, December 15, March 15, and June 15 - different from calendar year filers.

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