permitted year
Defined in 1 place of the United States Code.
For purposes of this section, the term “permitted year” means a taxable year which—
(1) is a year ending December 31, or
(2) is any other accounting period for which the corporation establishes a business purpose to the satisfaction of the Secretary.
Source
- 201326 U.S.C. § 1378Internal Revenue Code · Taxable year of S corporation · for purposes of this section
For purposes of this section, the term "permitted year" means a taxable year which—
(1) is a year ending December 31, or
(2) is any other accounting period for which the corporation establishes a business purpose to the satisfaction of the Secretary.
For purposes of paragraph (2), any deferral of income to shareholders shall not be treated as a business purpose.
Source
- 1994–present26 U.S.C. § 1378Internal Revenue Code · Taxable year of S corporation · for purposes of this section