(1) The return must be prepared and net income computed on the basis of an annual accounting period.   A return may not be prepared for a period of more than 12 months.

(2) A return for a fractional part of a year is required in the following cases:

(a) when a foreign corporation qualifies or a domestic corporation organizes on a day other than the first day of the reporting period it intends to establish;

(b) when a foreign corporation withdraws or when a domestic corporation dissolves on a day other than the last day of its established reporting period; or

(c) when a corporation changes its annual reporting period.

(3) In cases shown in (2) , a return must be filed for the short period beginning with the day following the close of the old period and ending with the day preceding the first day of the new period.