A 52-53 week tax year is a fiscal year that varies from 52 to 53 weeks. Once a business owner selects a fiscal year, he must maintain his books and records, and report income and expenses using the same tax year each time. Once you select a particular tax year, the IRS expects you to stick to it. If you do decide to change to another type, you will need to follow certain rules that often involve filing a request for approval with the IRS and, in some situations, filing a return for a short year. Selecting the right tax year for a partnership Given that a partnership's tax year is supposed conform to the partners' tax years, partnerships may need to change their tax year for a number of reasons.
Partners come and go for a variety of reasons.
Also, partners' shares in the business change over time, which also could affect the tax year required for a partnership. The IRS has specific rules to help partnerships determine their required tax year. If neither of these conditions applies, the partnership has to determine the tax rule that generates the least deferral of income . They don't have to formally apply for this change. Those who are switching from one tax year to another may find themselves with a short tax year on their hands as they make the transition.