Tameka Incorporated has used a calendar year as its taxable year since its incorporation in 1990. Tameka has an excellent business reason for changing to a fiscal year ending May 31. Which of the following statements is true?

Multiple Choice

• Because it has a good business reason, Tameka can change to a fiscal year ending May 31 without IRS permission and if Tameka changes to a fiscal year ending May 31, it must file a short-period return for the seven-month period from June 1 to December 31 of the year of change.

• Because it has a good business reason, Tameka can change to a fiscal year ending May 31 without IRS permission.

• If Tameka changes to a fiscal year ending May 31, it must file a short-period return for the five-month period from January 1 to May 31 of the year of change.

• If Tameka changes to a fiscal year ending May 31, it must file a short-period return for the seven-month period from June 1 to December 31 of the year of change.