Was this page helpful?
Thank you!

Comments or suggestions?



Enter Email Address (optional)
email

52-53 Week Tax Year Reporting Method

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.

Detailed Information

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:

  • Whatever date this same day of the week last occurs in a calendar month.
  • Whatever date this same day of the week falls that is nearest to the last day of the calendar month.
     

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.

Election

To make the election, attach a statement with the following information to your tax return for the 52-53-week tax year.

  1. The month in which the new 52-53-week tax year ends.
  2. The day of the week on which the tax year always ends.
  3. The date the tax year ends. It can be either of the following dates on which the chosen day:
    • Last occurs in the month in (1), above, or
    • Occurs nearest to the last day of the month in (1), above.
       

For additional information, please visit the IRS website. You can also refer to Publication 538, Accounting Periods and Methods.

KB ID# INF12985
12/7/2016 8:02:49 PM
QYPPRDQBKSWS01 9138 Pro 2017 e1c9e8