Finance Exam Prep

Ran Chen, EA, CFP®

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Enrolled Agent Exam [Part 2] 32, Accounting Period Election — Calendar vs Fiscal

5/29/2026 • 3 min

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The default tax year for most entities is the calendar year. - Personal Service Corporations (PSCs), S Corporations, and Partnerships are generally required to use a calendar year. - A fiscal year is permissible if there is a valid business purpose, such as meeting the 25% gross receipts test for a natural business year. - A Section 444 election allows for a fiscal year with up to a three-month deferral, but requires the entity to make 'required payments' to the IRS. - Partnerships have a specific hierarchy for determining their required tax year: majority interest, principal partners, and then the least aggregate deferral method. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

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