Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 66-68

1966-1 C.B. 197

Sec. 441

Full Text

Rev. Rul. 66-68

X , a newly organized corporation, made a timely election under section 1372(a) of the Internal Revenue Code of 1954 for its first taxable year by filing Form 2553, Election by Small Business Corporation, and a statement of consent of each shareholder of the corporation. X indicated on the Form 2553 that its first taxable year would be a fiscal year ending January 31, 1966. However, on December 15, 1965, X filed a return for a taxable year ending on September 30, 1965.

Held , the election under section 1372(a) of the Code is not affected by the adoption of an initial annual accounting period different from that specified on the Form 2553. Held further , the statement on Form 2553 that X's first taxable year was to end on January 31, 1966, did not constitute the adoption of a taxable year ending on that date, but the adoption of X's first taxable year was effected through the filing of a timely return for the period covered by such return.