SUBPART D. ACCOUNTING PERIODS AND

METHODS OF ACCOUNTING

§91. Period for computation of taxable income

A. Computation of taxable income. Taxable income shall be computed on the basis of the taxpayer's taxable year.

B. Taxable year. For purposes of this chapter, the term "taxable year" means:

(1) the taxpayer's annual accounting period, if it is a calendar year or a fiscal year;

(2) the calendar year, if sub-section G applies; or

(3) the period for which the return is made, if a return is made for a period of less then 12 months.

C. Annual accounting period. For purposes of this chapter, the term "annual accounting period" means the annual period on the basis of which the taxpayer regularly computes his income in keeping his books.

D. Calendar year. For purposes of this chapter, the term "calendar year" means a period of 12 months ending on December 31.

E. Fiscal year. For purposes of this chapter, the term "fiscal year" means a period of 12 months ending on the last day of any month other than December. In the case of any taxpayer who has made the election provided by sub-section F, the term means the annual period (varying from 52 to 53 weeks so elected).

F. Election of year consisting of 52-53 weeks.

(1) General rule. A taxpayer who, in keeping his books, regularly computes his income on the basis of an annual period which varies from 52 to 53 weeks and ends always on the same day of the week and ends always:

(a) on whatever date such same day of the week last occurs in a calendar month, or

(b) on whatever date such same day of the week falls which is nearest to the last day of a calendar month, may, in accordance with the regulations prescribed under sub-section F(3) of this section elect to compute his taxable income for purposes of this chapter on the basis of such annual period. This paragraph shall apply to taxable years ending after the date of the enactment of this chapter.

(2) Special rules for 52-53 week year.

(a) Effective dates. In any case in which the effective date or the applicability of any provision of this chapter is expressed in terms of taxable years beginning or ending with reference to a specified date which is the first or last day of a month, a taxable year described in sub-section F(1) of this section shall be treated:

(i) as beginning with the first day of the calendar month beginning nearest to the first day of such taxable year, or

(ii) as ending with the last day of the calendar month ending nearest to the last day of such taxable year, as the case may be.

(b) Change in accounting period. In the case of a change from or to a taxable year described in sub-section F(1) of this section:

(i) if such change results in a short period of less than 7 days, such short period shall, for purposes of this chapter, be added to and deemed a part of the following taxable year; and

(ii) if such change results in a short period to which sub-section B of R.S. 47:97 applies, the taxable income for such short period shall be placed on an annual basis for purposes of such sub-section by multiplying such income by 365 and dividing the result by the number of days in the short period. A tax shall then be determined on the annual basis, and the tax for the short period shall be that portion of the tax computed on the annual basis which bears a ratio to the tax computed on the annual basis as the number of days in the short period is to 365 days.

(3) Regulations. The collector shall prescribe such regulations as he deems necessary for the application of this sub-section.

G. No books kept; no accounting period. Except as provided in R.S. 47:97 (relating to returns for periods of less than 12 months), the taxpayer's taxable year shall be the calendar year if:

(1) the taxpayer keeps no books;

(2) the taxpayer does not have an annual accounting period; or

(3) the taxpayer has an annual accounting period, but such period does not qualify as a fiscal year.

Amended by Acts 1958, No. 242, §6.