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Usually, partnerships, S companies (together with electing S companies), and PSCs should use a required tax 12 months. A required tax year is a tax year that's required under the interior Revenue Code and Earnings Tax Regulations. The entity doesn't have to make use of the required tax 12 months if it receives IRS approval to use another permitted tax 12 months or makes an election beneath part 444 of the internal Income Code (mentioned later). The following discussions present the rules for partnerships, S firms, and PSCs.
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