Rev. Rul. 68-125

A new taxpayer commenced business in January 1967 and determined that a fiscal year ending June 30th would be its most natural annual accounting period. The taxpayer adopted this fiscal accounting period prior to the time prescribed by law for the filing of its income tax return for such taxable year, and its books and records reflected the adoption of this accounting period. However, the taxpayer did not file its initial income tax return within the time prescribed by law.

Held, the taxpayer has complied with the provisions of section 1.441-1 of the Income Tax Regulations for the adoption of a fiscal year ending June 30th since the taxpayer adopted such taxable year on or before the time prescribed by law (not including extensions) for the filing of the return for such taxable year. The fact that the taxpayer did not file its initial return within the time prescribed by law for such filing does not, of itself, preclude the adoption of a fiscal taxable year pursuant to section 1.441-1 of the regulations.