Tax year selection definition

For individuals, partnerships, limited liability companies (LLC), and Sub-chapter S corporations, the tax year must be the calendar year, January 1 to December 31.

For C corporations, the tax year can be the calendar year, or another 12 month beginning and ending period -- for example, October 1 to September 30.

You do not need IRS approval for your tax year; you simply use it to govern when you must file your first return and you use the same tax year thereafter. For example, if an LLC begins business operations in July, the first tax reporting will be for a partial year.