Sunday, October 21, 2018

'Tax Year' Aster Billing

WHAT IS A 'Tax Year'

A tax year refers to the 12-month period covered by a particular tax return. The Internal Revenue Service allows some flexibility in determining the start and end dates of a tax year, and it is not necessarily the same period as a fiscal year.BREAKING DOWN 'Tax Year'A tax year is an annual accounting period used by a taxpaying individual or firm for tax purposes. The U.S. Internal Revenue Service (IRS) allows most businesses to use either a calendar year or the firm’s fiscal year as its tax year. Exceptions to this are firms that are required to use the calendar year ending December 31 as their tax year. These include sole proprietorships and single-member LLCs. These firms are required to end their tax year on December 31 because they generally pay taxes as an extension of their single owner.




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