My corporate return needs to electronically file a short period return. We would like to include an explanation of this short period return and related information. How do we include this explanation with our return

To include an explanation of the short period return and related information with your electronically filed corporate return, follow these steps:

1. Prepare the Explanation: Draft a detailed explanation of the short period return. This should include the reason for the short period, such as a change in accounting period, dissolution, or any other relevant circumstances. Clearly explain the circumstances that caused the short tax year.
2. Attach the Explanation: When filing electronically, you can attach the explanation as a PDF document. Ensure that the PDF is clear, legible, and not password-protected or encrypted, as this can prevent the IRS from opening the attachment.
3. Label the Attachment: Clearly label the PDF attachment to indicate that it contains the explanation for the short period return. For example, you might title the document "Explanation for Short Period Return."
4. Include Required Information: Make sure the explanation includes the following:
   • The corporation's name and EIN.
   • The beginning and ending dates of the short tax year.
   • The reason for the short period (e.g., change in accounting period, dissolution).
   • Any other relevant details that provide context for the short period.
5. File Form 1128 if Required: If the short period is due to a change in accounting period, and the corporation has previously changed its annual accounting period within the last 10 years, you may need to file Form 1128, Application to Adopt, Change, or Retain a Tax Year, with the short-period return. Include the reason for the change, such as "Form 1128 was approved" or "Revenue Procedure 85-58 rules apply."
6. Submit the Return: When you electronically file the return, ensure that the PDF attachment is included with the submission. Follow the instructions provided by your e-filing software to attach the document correctly.

By following these steps, you can ensure that the IRS receives a comprehensive explanation of the short period return along with your electronically filed corporate return.

Sources:
Instructions for Form 1120 (2023)
Publication 542 (1/2024)
Rev. Proc. 2022-9
Instructions for Form 990 Return of Organization Exempt From Income Tax (2023)
Instructions for Form 990-EZ (2023)
Instructions for Form 7004 (12/2018)
Instructions for Form 1120-S (2023)