The 52-53-week tax year reporting method is used in industries like restaurants that perform period for reporting and closing of their books on a weekly basis. For example, a restaurant might establish a weekly reporting period, Monday through Sunday, and create a 53-week calculation, ignoring a crossover of months. Visit the IRS website for more information about tax years.
According to the IRS, you can elect to use a 52-53-week tax year if you keep your books and records and report your income and expenses on that basis. If you make this election, your 52-53-week tax year must always end on the same day of the week.
Your 52-53-week tax year must always end on:
For example, if you elect a tax year that always ends on the last Monday in March, your 2016 tax year ends on March 31, 2016. If you elect a tax year ending on the Thursday nearest to the end of April, your 2016 tax year ends on May 1, 2016.
To make the election, attach a statement with the following information to your tax return for the 52-53-week tax year.
For additional information, please visit the IRS website. You can also refer to Publication 538, Accounting Periods and Methods.