You have the option of reporting your "Basis for Tax" based on your business's fiscal or calendar year. If you choose to convert from calendar year to fiscal year reporting, check the box "Change of Information" box of Section 1 of the Business Tax Renewal Form and enter the tax measure for the 12 month period of your fiscal year which ended in calendar year 2020 under "Basis for Tax" on Column D, Section III of the Renewal Form (this may include amounts previously reported under calendar year reporting). Please enter your fiscal year on Section VI - Information Update of the Renewal Form as well. Remit the completed form along with your payment, if applicable, in the envelope provided.
Example: If your fiscal year is 07/01/19 through 06/30/20, the tax measure to be reported on the 2021 Business Tax Renewal would be for the period 07/01/19 through 06/30/20.
Businesses newly established in calendar year 2020 are NOT eligible to choose fiscal year filing until the 2022 renewal.
Fiscal vs. Calendar Year Reporting
Due to seasonal sales volumes, some industries benefit from a fiscal accounting year. Fiscal years allow you to reduce your tax burden by spreading income and expenses over the same sales cycle. If you experience high and low sale months, a fiscal year helps you see a more accurate picture of progress.
A business that has elected to report tax measures on a fiscal year basis can revert to regular calendar year reporting only if its fiscal year has changed. Otherwise a waiver is required from the Office of Finance. Any change in your fiscal year must be reported to the Office of Finance. For more information regarding changing your tax reporting period, call (844) 663-4411.