2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1008 - Tax Returns and Payment (§§ 30241 — 30303) › Subchapter A - Income Tax Returns (§§ 30241 — 30264) › § 30264 - Returns for a period of less than twelve months

(a) Returns for short period due to change of accounting period.— When the taxpayer, with the approval of the Secretary, changes the basis on which the net income is computed from fiscal year to calendar year, the taxpayer shall file a separate return for the period comprised between the close of the last fiscal year for which the taxpayer filed a return and the following December 31st. If the change is from calendar year to fiscal year, a separate return shall be filed for the period comprised between the end of the last calendar year for which a return was filed and the date established as the close of the fiscal year. If the change is from one fiscal year to another fiscal year, a separate return shall be filed for the period comprised between the close of the previous fiscal year and the date established as the close of the new fiscal year.
(b) Income computed based on short period.— When a separate return is filed under subsection (a) due to a change in the accounting period, and in all the other cases in which it is required or allowed, under the regulations prescribed by the Secretary to file a separate return for a fraction of the year, the income shall be computed on the basis of the period for which the separate return is filed.
(c) Income placed on annual basis.—
(1) General rule.— If a separate return is filed under subsection (a) due to a change in the accounting period, the net income, computed on the basis of the period for which the separate return is filed (referred to in this subsection as “the short period”), shall be placed on an annual basis by multiplying the amount thereof by twelve (12), and dividing the product by the number of months in the short period. The tax shall be the same part of the tax computed on such annual basis as the number of months in the short period and twelve (12) months.
(2) Exception.— If the taxpayer establishes the amount of his/her net income for the period of twelve (12) months beginning with the first day of the short period, computed as if such twelve-month period were a taxable year, under the law applicable to such year, then the tax for the short period shall be reduced to an amount which bears the same ratio to the tax computed on the net income for such twelve-month period as the net income computed on the basis of the short period bears to the net income for the twelve-month period. The taxpayer, other than a taxpayer to whom the next sentence applies, shall compute the tax and file his/her return without the application of this clause. If the taxpayer, other than a corporation, was not in existence at the end of the twelve-month period, or if the taxpayer is a corporation and has disposed of substantially all its assets prior to the end of such twelve-month period, then, in lieu of the net income for such twelve-month period there shall be used, for purposes of this clause, the net income for the twelve-month period ending on the last day of the short period. The tax computed under this clause shall in no case be less than the tax computed on the net income for the short period without placing such net income on an annual basis. The benefits of this clause shall not be allowed unless the taxpayer, at such time as regulations prescribed hereunder require (but not after the date prescribed for filing the return for the first taxable year which ends on or after twelve (12) months after the beginning of the short period), applies therefor in accordance with such regulations. Such application, in case the return was filed without regard to this clause, shall be considered a claim for credit or refund with respect to the amount by which the tax is reduced under this clause. The Secretary shall prescribe any regulations deemed necessary for the application of this clause.
(d) Reduction of personal exemptions and for dependents.— In the case of a return prepared for a fraction of a year under § 30282(a)(1) of this title, the exemptions provided in § 30138 of this title shall be reduced to amounts which bear the same ratio to the complete exemptions so provided, the same proportion that the number of months included in the period for which the return is prepared bears with the twelve (12) months.
(e) Close of taxable year for tax in jeopardy.— The close of taxable year as to a tax in jeopardy shall be governed by the provisions of § 30282 of this title.
(f) Returns of taxpayers not in existence for twelve (12) months.— In the case of a taxpayer who was not in existence during the entire annual accounting period ending on the last day of any month for whichever reason, including the death of an individual, or if the taxpayer has no such annual accounting period or did not keep books during the entire calendar year, the return shall be filed for the fractional part of the year during which the taxpayer was in existence. For purposes of this subsection, the term “taxpayer who was not in existence during the entire annual accounting period” shall include any of the spouses who die during the annual period.
History —Jan. 31, 2011, No. 1, § 1061.24, retroactive to Jan. 1, 2011; Dec. 10, 2011, No. 232, § 64.