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

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.

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.

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.

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.

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.

Don't overlook state filing requirements too! Depending on your state, they might have different rules for fiscal year filers. Here in California, we have to file a separate form notifying the state of our fiscal year choice, and there are some weird timing requirements that don't match the federal ones.

Just to add - if this is your first year as an S-Corp or you've changed your fiscal year, you might need to file Form 1128 (Application to Adopt, Change, or Retain a Tax Year). This isn't always required, but in certain situations the IRS wants you to get permission for your fiscal year choice.

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.

This thread has been incredibly helpful! I'm a small business owner with a service-based LLC that I'm considering converting to S-Corp status, partly because I want to switch to a fiscal year that better matches my business cycle (most of my revenue comes in Q4). Reading through all these responses, it sounds like the fiscal year filing process is pretty straightforward once you understand the basic rule, but there are definitely some nuances around estimated payments and state requirements that I hadn't considered. One question I have - if I'm planning to make this conversion, should I coordinate the S-Corp election timing with when I want my new fiscal year to start? Or are those two decisions completely separate? I'd hate to create unnecessary complications by not thinking through the timing properly. Also, Emma, how did everything work out with your filing? Did you end up getting it sorted out correctly?

I just wanted to share my experience as someone who went through this exact confusion a few years ago with my small retail business. The fiscal year filing rules definitely seem backwards at first, but once you get the hang of it, it becomes routine. One thing that really helped me was creating a simple calendar that shows my fiscal year dates, when returns are due, and when estimated payments need to be made. I keep it right on my desk so I never have to second-guess the timing again. Also, if you're working with a new accountant or doing more of this yourself now, make sure they understand that S-Corps with fiscal years have some unique reporting requirements. I had one tax preparer who was used to calendar year filers and made several mistakes on my initial return that we had to amend later. The good news is that once you file your first fiscal year return correctly, the pattern becomes much clearer. Your business accounting software should also be set up to match your fiscal year to make monthly and quarterly reporting much easier. Good luck with your filing!

Thanks everyone for all the detailed responses! This thread has been incredibly helpful. I ended up following Malik's advice about filing for the tax year in which my fiscal year ends, so I filed a 2024 return for my June 30, 2024 fiscal year end. I also took several of your suggestions and called the IRS directly to confirm everything (thanks Omar for the Claimyr tip - saved me hours of hold time!). The agent confirmed I was on the right track and also reminded me about the September 15th deadline, which I almost missed focusing on the tax year confusion. One thing I learned that might help others: the IRS agent mentioned that if you're unsure about your fiscal year filing requirements, Publication 538 has all the details about tax years and accounting periods. It's pretty dry reading, but it cleared up several questions I had about the timing. For anyone else dealing with this - definitely don't overthink it like I did. The basic rule really is straightforward: file for the year your fiscal year ends. Everything else follows from that principle. Thanks again for all the help!

I'm so glad to see this thread helped you get everything sorted out! As a fellow small business owner who's dealt with fiscal year confusion, I totally understand how overwhelming it can feel at first. The IRS publications can be dense, but Publication 538 really is the authoritative source when you need to double-check the rules. One additional resource that might help others - the IRS also has a Business Tax Calendar that shows all the key filing dates for different entity types and fiscal years. You can find it in Publication 509. It's really handy for planning ahead and making sure you don't miss any deadlines. Your point about not overthinking it is spot on. I spent way too much time second-guessing myself when the basic rule really is that simple. Thanks for sharing your experience and helping future readers who might be dealing with the same confusion!

This has been such an educational thread! As someone who's been running a small consulting business as a sole proprietorship but considering the S-Corp election, reading through all these experiences has really highlighted how important it is to understand the fiscal year implications upfront. Emma, I'm glad you got everything sorted out! The confusion you described is exactly what I'd be worried about facing. It sounds like the key takeaways are: 1) file for the tax year when your fiscal year ends, 2) don't forget about the different quarterly payment schedules, 3) check state requirements separately, and 4) keep good records/calendars to track all the deadlines. One question for the group - for those of you who switched from sole proprietorship to S-Corp, did you find that having a fiscal year (vs. calendar year) actually provided meaningful business benefits? I'm trying to weigh whether the added complexity is worth it for the potential tax planning advantages, or if I should just stick with a calendar year S-Corp to keep things simpler. The resources mentioned here (Publication 538, the IRS Business Tax Calendar) are definitely going on my reading list before I make any decisions. Thanks everyone for sharing such detailed real-world experiences!

As someone who just went through this exact situation with my small architecture firm, I can definitely relate to the confusion! The fiscal year vs. tax year terminology really throws people off at first. One thing that helped me understand it better was thinking of it this way: the IRS doesn't care when your fiscal year *started* - they only care when it *ended*. So your June 30, 2024 fiscal year end means you're filing a "2024" return, even though that fiscal year actually began on July 1, 2023. The tricky part I ran into was making sure all my depreciation schedules and business deductions aligned properly with the fiscal year dates. I'd definitely recommend double-checking that your accounting software is set to your fiscal year dates rather than calendar year, especially for things like equipment purchases and business expenses that need to be allocated correctly. Also, since you mentioned this is only your second year with this setup, make sure you're keeping good documentation of when you adopted the fiscal year. The IRS sometimes asks for this information during audits, and having clean records from the beginning makes everything much smoother down the road.