52-53 Week Taxable Year Election

§ 441. Period for computation of taxable income(a) Computation of taxable incomeTaxable income shall be computed on the basis of the taxpayer’s taxable year. (b) Taxable yearFor purposes of this subtitle, the term “taxable year” means—(1) the taxpayer’s annual accounting period, if it is a calendar year or a fiscal year; (2) the calendar year, if subsection (g) applies; (3) the period for which the return is made, if a return is made for a period of less than 12 months; or (4) in the case of a DISC filing a return for a period of at least 12 months, the period determined under subsection (h). (c) Annual accounting periodFor purposes of this subtitle, the term “annual accounting period” means the annual period on the basis of which the taxpayer regularly computes his income in keeping his books. (d) Calendar yearFor purposes of this subtitle, the term “calendar year” means a period of 12 months ending on December 31. (e) Fiscal yearFor purposes of this subtitle, the term “fiscal year” means a period of 12 months ending on the last day of any month other than December. In the case of any taxpayer who has made the election provided by subsection (f) the term means the annual period (varying from 52 to 53 weeks) so elected. (f) Election of year consisting of 52–53 weeks(1) General ruleA taxpayer who, in keeping his books, regularly computes his income on the basis of an annual period which varies from 52 to 53 weeks and ends always on the same day of the week and ends always—(A) on whatever date such same day of the week last occurs in a calendar month, or (B) on whatever date such same day of the week falls which is nearest to the last day of a calendar month, may (in accordance with the regulations prescribed under paragraph (3)) elect to compute his taxable income for purposes of this subtitle on the basis of such annual period. This paragraph shall apply to taxable years ending after the date of the enactment of this title. (2) Special rules for 52–53-week year(A) Effective datesIn any case in which the effective date or the applicability of any provision of this title is expressed in terms of taxable years beginning, including, or ending with reference to a specified date which is the first or last day of a month, a taxable year described in paragraph (1) shall (except for purposes of the computation under section 15) be treated—(i) as beginning with the first day of the calendar month beginning nearest to the first day of such taxable year, or (ii) as ending with the last day of the calendar month ending nearest to the last day of such taxable year, as the case may be. (B) Change in accounting periodIn the case of a change from or to a taxable year described in paragraph (1)—(i) if such change results in a short period (within the meaning of section 443) of 359 days or more, or of less than 7 days, section 443(b) (relating to alternative tax computation) shall not apply;