Legal Resources - Tax Rules

Tax Rules: Final: 5703-5

5703-5-03 - Dates on which a taxpayer's taxable year begins and ends

(A) This rule first applies for tax year 1990. It prescribes the dates on which a taxpayer's taxable year begins and ends and is subject to any modifications required by rule 5703-5-04 of the Administrative Code concerning changes of a taxpayer's annual accounting period. Rule 5703-5-01 of the Administrative Code defines terms used in this rule.

(B) A taxpayer's taxable year shall begin as follows:

(1) Unless the taxpayer is a new taxpayer, the taxable year shall begin on the date immediately following the end of the taxpayer's prior taxable year.

(2) If the taxpayer is a new taxpayer, the taxable year shall begin on the date that the taxpayer becomes a new taxpayer.

(C) A taxpayer's taxable year shall end as follows:

(1) Unless paragraph (C)(2) of this rule applies, the taxable year shall end on the date immediately preceding the beginning of the taxpayer's annual accounting period that includes the first day of January of the tax year.

(2) If the taxpayer becomes a new taxpayer at or after the beginning of the taxpayer's annual accounting period that includes the first day of January of the tax year, the taxable year shall end on the thirty-first day of December immediately preceding the tax year.

(D) For purposes of this rule, if a taxpayer has an annual accounting period that varies between fifty-two and fifty-three weeks in length, the accounting period shall be deemed to close on the last day of the calendar month nearest to the last day of the accounting period.

(E) The following examples illustrate the application of this rule:

(1) CORP-C is chartered as a domestic corporation on June 15, 1989 and adopts a November thirtieth fiscal year end. For tax year 1990, CORP-C's taxable year begins on June 15, 1989 and ends on November 30, 1989. For tax year 1991, CORP-C's taxable year begins on December 1, 1989 and ends on November 30, 1990. For tax year 1992, CORP-C's taxable year begins on December 1, 1990 and ends on November 30, 1991.

(2) CORP-D is chartered as a domestic corporation on June 15, 1989 and adopts a March thirty-first fiscal year end. For tax year 1990, CORP-D's taxable year begins on June 15, 1989 and ends on December 31, 1989. For tax year 1991, CORP-D's taxable year begins on January 1, 1990 and ends on March 31, 1990. For tax year 1992, CORP-D's taxable year begins on April 1, 1990 and ends on March 31, 1991.

(3) CORP-E, a foreign corporation having no previous taxable nexus with Ohio, obtains a certificate to do business in this state on August 2, 1989. CORP-E has an October thirty-first fiscal year end. For tax year 1990, CORP-E's taxable year begins on August 2, 1989 and ends on October 31, 1989. For tax year 1991, CORP-E's taxable year begins on November 1, 1989 and ends on October 31, 1990. For tax year 1992, CORP-E's taxable year begins on November 1, 1990 and ends on October 31, 1991.

(4) CORP-F, a foreign corporation having no previous taxable nexus with Ohio, obtains a certificate to do business in this state on August 2, 1989. CORP-F has an April thirtieth fiscal year end. For tax year 1990, CORP-F's taxable year begins on August 2, 1989 and ends on December 31, 1989. For tax year 1991, CORP-F's taxable year begins on January 1, 1990 and ends on April 30, 1990. For tax year 1992, CORP-F's taxable year begins on May 1, 1990 and ends on April 30, 1991.

(5) CORP-G has an annual accounting period that varies between fifty-two and fifty-three weeks in length. One of CORP-G's annual accounting periods ends on January 4, 1990. For tax year 1990, CORP-G's taxable year ends on January 4, 1990, which is deemed equivalent to December 31, 1989.

Effective: 12-30-89

Promulgated under: 5703.14

Authorized by: 5703.05

Amplifies: 5733.031, 5733.04, 5733.05

Prior effective dates: 1-1-72, 2-25-72