Tax Year

"Over what period of time are we taxing your operating profits, Mr. Corporation?" That's the tax year. And in almost everywhereland, a tax year runs from January 1 to December 31. That's the year in which profits are assessed for tax purposes. They are then paid n months later. And yes, many or most corporations and individuals pay taxes quarterly, and then "true up" the amount they owe at the end of the year.

Some companies, though, run from Valentine's Day to February 13. Why? A romantic view of...taxes? Others run from July 1 to June 30. Why? Eh, maybe because they're in industries which are just very quiet that time of the year (winter coat sales?) and they like making life difficult for everyone else.

And it's not a bad idea to have an off-calendar-year tax year. Think about the poor accountants who have everyone yelling at them the same week to finish their taxes. Were things staggered, it'd be way better throughout for those people leading lives a lot like James Bond's. Or actually, just the opposite.