Forms for liquidating an s corporation
Use the Comment on Tax Forms and Publications web submission form to provide us feedback on the content of the products we give you to help you comply with tax law.CAUTION: We cannot respond to tax-related questions submitted using this page. For tax accounting purposes, you will need to file one last S corporation 1120S tax return, marking the return as "final." You should also technically file the form 966 with Internal Revenue Service.The 966 form and instructions are available at the gov web site.While “complete liquidation” is not defined by the Internal Revenue Code, IRS regulations suggest that your corporation enters liquidation status when it ceases to be a going concern and, instead, corporate activities are mainly for the purpose of closing down the business, paying corporate debts and distributing remaining assets to the shareholders.You can draft your corporation’s bylaws to describe specific processes for liquidation and dissolution.
You will use one form to dissolve a limited liability company and another form to dissolve a regular corporation.It may take some time to close down your business and dispose of all your business assets.Before your corporation can truly cease to exist, it must wind up its business affairs.Although your corporate bylaws or state laws may spell out the liquidation and dissolution process, the methods used are generally similar between corporations.Liquidation of assets occurs once your S corporation has filed its dissolution paperwork with your state’s business registration office, frequently the secretary of state or similar state agency.