Hi, this is Lee Phillips. I'm an attorney. Don't hold that against me, as I always say. I want to talk to you for two seconds about calendar year taxation. If I have a corporation and it's taxed under subchapter C of the IRS code, you're going to call that a C corporation. Then I can choose a calendar year. If I have a corporation taxed under subchapter S of the IRS code, I have to use the calendar year rather than choose a fiscal year for the company like I can for the C corporation. The reason is the S corporation is a pass-through entity. The corporation itself doesn't actually pay taxes. In a C corporation, the corporation itself actually pays taxes, but in an S corporation, it passes through to the individual owners. They get a K1 and then they pay the tax. So it's a pass-through entity. As a result, those individual owners are going to pay the tax December 31st year-end. Therefore, the company has to have a December 31st year-end. And that would be the same for an LLC taxed under subchapter S of the IRS code or an LLC taxed as a partnership or sole proprietorship or whatever it is. That company is going to have the calendar year as its tax year. Let's go back to the C corporation for two seconds. That pays its own tax. It gets to choose its tax year. And if you choose the tax year in March or whatever it is, and you've got the right accounting stuff with receivables, this is not in the other than, you can postpone the taxes on those for a period. And you can get the value of the money in your pocket rather than paying it to the IRS's pocket....
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Video instructions and help with filling out and completing How Form 1120 Schedule M 3 Receivable
