Question

A corporation must use a calendar year as its tax year unless it has a substantial business purpose to use a fiscal year

a)True
b)False

Answer 1

A corporation must use a calendar year as its tax year unless it has a substantial business purpose to use a fiscal year.

Step-by-step explanation:

A corporation must use a calendar year as its tax year unless it has a substantial business purpose to use a fiscal year. This statement is True. The Internal Revenue Service (IRS) requires most corporations to use the calendar year as their tax year. However, if a corporation can demonstrate a valid business reason for using a fiscal year, such as aligning with the industry's business cycle or operational needs, it may be allowed to use a fiscal year.