§97.  Returns for a period of less than twelve months

A.  Change of accounting period.  If a taxpayer, with the approval of the collector, changes the basis of computing net income from fiscal year to calendar year, a separate return shall be made for the period between the close of the last fiscal year for which return was made and the following December 31.  If the change is from calendar year to fiscal year, a separate return shall be made for the period between the close of the last calendar year for which return was made and the date designated as the close of the fiscal year.  If the change is from one fiscal year to another fiscal year, a separate return shall be made for the period between the close of the former fiscal year and the date designated as the close of the new fiscal year.  

B.  Income computed on basis of short period.  Where a separate return is made under Sub-section A of this Section on account of a change in the accounting period, and in all other cases where a separate return is required or permitted, by regulations prescribed by the collector, to be made for a fractional part of a year, then the income shall be computed on the basis of the period for which separate return is made.  

C.  Income placed on annual basis.  If a separate return is made under Sub-section A of this Section on account of a change in the accounting period, the net income, computed on the basis of the period for which separate return is made, shall be placed on an annual basis by multiplying the amount thereof by twelve and dividing by the number of months included in the period for which the separate return is made.  The tax shall be such part of the tax computed on such annual basis as the number of months in such period is of twelve months.  

D.  Reduction of credits against net income.  In the case of a return made for a fractional part of a year, except a return made under Sub-section A of this Section on account of a change in the accounting period, the personal exemption and credit for dependents shall be reduced respectively to amounts which bear the same ratio to the full credits provided as the number of months in the period for which return is made bears to twelve months.