Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 05 - Division of Revenues › 1998-1 - Comprehensive Corporation Income Tax Regulations › Rule 26-51-102 - CORPORATION INCOME TAX DEFINITIONS › Rule 2.26-51-102(17)(A) - Tax Year

Current through Register Vol. 49, No. 6, June, 2024
A taxpayer may elect to compute his taxable income on the
					 basis of an annual period which varies from 52 or 53 weeks. A 52 or 53 week tax
					 year means the annual period which varies from 52 or 53 weeks and always ends
					 on the same day of the week and always ends:
(1) on whatever date such same day of the
				  week last occurs in a calendar month; or
(2) on whatever date such same day of the
				  week falls which is nearest to the last day of a calendar month.
For example, if the taxpayer elects a tax year which always
					 ends on the last Saturday in November, then for the year 1994, the tax year
					 would end on November 26, 1994. On the other hand, if the taxpayer had elected
					 a tax year which always ends on the Saturday nearest to the end of November,
					 then for the year 1994, the tax year would end on December 3, 1994. Thus, in
					 the case of a tax year described in subparagraph (1) of this regulation, the
					 year will always end within the month and may end on the last day of the month,
					 or as many as six days before the end of the month. In the case of a tax year
					 described in subparagraph (2) of this regulation, the year may end on the last
					 day of the month, or as many as three days before or three days after the last
					 day of the month.
For the purpose of determining the effective date or the
					 applicability of any corporate income tax statute which is expressed in terms
					 of tax years beginning, including, or ending on the first or last day of a
					 specified calendar month, a 52 or 53 week tax year is deemed to begin on the
					 first day of the calendar month beginning nearest to the first day of the 52 or
					 53 week tax year, and is deemed to end or close on the last day of the calendar
					 month ending nearest to the last day of the 52 or 53 week tax year. This is
					 illustrated by the following examples:
Example (1). Assume that an income tax provision applies to
					 tax years beginning on or after January 1, 1994. For that purpose, a 52 or 53
					 week tax year beginning on any day within the period December 26, 1993, to
					 January 1, 1994, shall be treated as beginning on January 1, 1994.
Example (2). Assume that an income tax provision requires
					 that a return must be filed on or before the 15th day of the fifth month
					 following the close of the tax year. For that purpose, a 52 or 53 week tax year
					 ending on any day during the period May 25 to June 3, shall be treated as
					 ending on May 31, the last day of the month ending nearest to the last day of
					 the tax year, and the return, therefore, must be made on or before October
					 15.
Example (3). X, a corporation created on January 1, 1994,
					 elects a 52 or 53 week tax year ending on the Friday nearest the end of
					 December. Thus, X's first tax year begins on Saturday, January 1, 1994, and
					 ends on Friday, December 30, 1994; its next tax year begins on Saturday,
					 December 31, 1994, and ends on Friday, December 29, 1995; and its next tax year
					 begins on Saturday, December 30, 1995, and ends on Friday, January 3, 1997. X's
					 first tax year is deemed to begin on January 1, 1994, and end on December 31,
					 1994; its next tax year is deemed to begin on January 1, 1995, and end on
					 December 31, 1995. Accordingly, each such tax year is treated as including one
					 and only one December 31st.