444 generally allows such entities to adopt, change to or retain an FYE, provided the partnership or S corporation makes a "required payment" under Sec.
As Example 1 illustrates, if S's taxable income decreases in FYE June 30, 1994, the entity would realize a net cash flow savings of $16 by terminating its fiscal year election and adopting a December 31 year-end.
The chart below is a comparison of S's cash flow applicable to the FYE June 30, 1993 and the short period July 1 through Dec.
31, 1993, the loss would be available to the shareholder to offset taxable income from FYE June 30, 1993.