The application, IRS Form SS4, must be filed with the local IRS Service Center. The FEIN is used in most federal and state tax filings and is usually required to establish an account with any financial institution. Form SS4 also contains several questions about the new business's activities, such as anticipated date of having employees. Although Form SS4 requests information about the corporation's year end, IRS regulations say that the choice of year end is made on the first tax return filed for the new corporation. An officer of the corporation can apply for the FEIN over the phone.
Most regular corporations can elect any fiscal year they want.
The tax year is selected on the entity's first income tax return. In general, S corporations and professional service corporations must use a calendar year. If either type of corporation can show a valid business purpose for using a different fiscal year, the IRS may allow the use of a different fiscal year. As a requirement of adopting a fiscal year, the corporation must make certain distributions before the end of the calendar year. Generally, once the accounting period is selected, it can only be changed with IRS permission.