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Taxpayers who are filing a short taxable year return for the current year, and who filed a return for a full 12 months for the prior year, may modify their prior year tax before using it to compute their required annual payment. The modification consists of dividing the prior year tax by 12, and multiplying the result by the number of months in the short taxable year.
For the purpose of computing modified prior year tax, a partial month in the short taxable year is considered to be a full month.
In dealing with short years, partial months are full months. The 9 month would be used in the exemption calculation.
Thank you on your response. Can you tell me what authority you are using with your answer that partial months can be counted as full months? I couldn't find the information myself & would like to know.
Internal Revenue Manual, the specific was on penalties but applying the partial month procedure under short year would flow to the calculation as well.
I posted the manual number in my response previously, I hope you were able to see the complete post.
Thank you, XXXXX XXXXX to the IRS manual helped, I didn't understand what the "20.1.3..." reference meant in your post. Got it now! Thank you.
You are most welcome
Your positive rating is always thanks enough.