35 Miss. Admin. Code Pt. III, Subpt. 1, Ch. 02 — Accounting Periods

100 Every taxpayer must compute taxable income based on their tax year. A tax year is an
annual accounting period used by the taxpayer for keeping records and reporting income
and expenses. A tax year may be a calendar year, which is a period of twelve (12)
consecutive months ending on December 31st, or a fiscal year, which is a period of twelve
(12) consecutive months ending on the last day of any month except December 31st.
101 Miss. Code Ann Section 27-7-13(4) provides that if a taxpayer's annual accounting period
is not a proper fiscal year ending or if the taxpayer has no annual accounting period or does
not maintain books and records that identify an accounting period, that the taxable period
will be based on a calendar year.
102 S Corporations, fiduciaries and partnerships are required to file for the same period for
Mississippi as for federal purposes.
103 Taxpayers required to file an individual income tax return will file using a calendar year tax
period unless they have been granted permission by the Commissioner to file otherwise.
104 Pursuant to Miss. Code Ann. Section 27-7-43 a taxpayer will only be allowed to change an
accounting period when it has received approval from the Commissioner. If permission is
granted by the federal government to change the accounting period, then state permission is
automatic provided the taxpayer attaches a copy of the written federal approval to the first
state return filed for the new period. If the Commissioner determines that such change in
accounting period results in an understatement of income, the Commissioner will deny the
final approval.
105 When the accounting period is changed, it is required that the tax on the first return be
computed by placing the income on an annual basis. The annualized income is determined
by dividing the income for the period by the number of months in the short period and
multiplying the result by twelve (12). The tax computed on the annualized taxable income
is multiplied by the number of months in the short period and divided by twelve (12).
106 (Reserved)
35.III.1.02 revised effective January 7, 2019