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Last year, Décor Corporation changed its tax year-end from December 31 to March 31. The IRS granted permission for this change based on the seasonability of Decor’s underlying income. Over a period of time, Décor had converted from handling plant-care services in large office buildings to providing Christmas decoration services to businesses and individuals. Because nearly all of Decor’s receivables are now collected in the first few months of the calendar year, a March tax year made sense for the taxpayer and the IRS.The Christmas season operations were so profitable that GiantCo acquired Décor by merger this year. As the entities will be joining in a Federal consolidated income tax return. Décor now must convert to GiantCo’s June 30 tax year. Mary Ellen Rogers, the Décor tax director, oversaw the prior conversion of tax years and remembers the extensive paperwork involved in electing a new tax year-end. She also recalls that a taxpayer cannot change its Federal income tax year more than once in a two-calendar year period. Write a letter to Rogers addressing this issue. Décor tax and executive officers are at 1101 Office Strip Lane, Suite 3, Nashville, TN, 37203
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