This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- Why IRS approval, requested via Form 1128, is generally required to change a tax year.

- That a change in tax year creates a short-period return for the months between the old and new year-ends.

- How to perform the three-step calculation to annualize income and determine the tax for a short period.

- That certain corporations can receive automatic approval for a tax year change under Rev. Proc. 2006-45.

- To recognize the common exam trap of forgetting to prorate the annualized tax back to the short period.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep