How to File IRS Form 966 for a Corporate Dissolution or Liquidation

[@marcusthatsme]

This was exactly what I was looking for, thanks for such a great and straight-forward explanation!

[@JasonDKnott]

You're welcome!

[@sergeisimonovich8110]

Hi, Jason, your video was real helpful to me in explaining how to figure the right dates in sections 6 and 7a as these are not at all obvious ! Many thanks ! Sergey

[@JasonDKnott]

Glad it was helpful!

[@SilviaOstrowskij]

HI do I need to file IRS form 966 if I don't have shares

[@nazlymaestrerealtor]

hi Jason thanks for this, besides this form I have to add a letter stating the dissolution? Thanks

[@mohammadsulman5229]

What a great human. Thanks man!

[@JasonDKnott]

You're welcome!

[@kandaharenglish2595]

What if I opened the company and never opened it , just got the EIN band LLC but stopped pursuing it, how would I fill out the E file tax part

[@shannapersin]

Oh my gosh - this is sooooooooooooo helpful. Thank you.

[@JasonDKnott]

Glad it was helpful!

[@muhashyagmyroff5197]

Does this form applies on to LLC elected taxation as S corporation?

[@JasonDKnott]

Good question! The issue is generally whether the entity has adopted a plan or resolution to dissolve the entity. If the LLC has done so, it's recommended to file the Form 966

[@Xtra_One1]

Hey Jason, Do I need to only file form 966 if I want complete termination of my LLC. Or do I have to file form 1120 with it if I dissolve my LLC the same year I made it? Please get back to me! Thanks!

[@Xtra_One1]

Also do i need to file an annual report if I order dissolution the same year I made the LLC

[@TK-yq4jj]

Hi Jason. Thank you for the video, it was very informative. I have a question. I filed final return already which was for 2023 tax year. I have not filed 966 form after 30 days of resolution. Can I file it now since final return is filed, and more than 30 days have passed? please advise. Thank you again.

[@briancohen4269]

Hi Jason, is the final balance sheet on Form 1120, Schedule L supposed to be nil? If a balance sheet shows only $100 common stock and -$100 retained earnings, should this all be zeroed out through an M-2 adjustment?

[@timberlakedawn1984]

If my last day of operation is 12/31/22 and I am about to file the final return, what is the penalty since the date resolution was adopted occurred after everything?

[@agentgringo1996]

in this example; how do you file a final return in the same tax year when the IRS Forms are not out until early the following year? I'm in that predicament now.

[@RomilCPatel]

I’m in the same situation now as the 2024 forms aren’t out yet. What did you end up doing?

[@DanielGarcia-kk4bg]

What if you're closing a Corporation you opened the same year, so there is no prior tax return. How would you fill out some of these boxes? Thanks!

[@JasonDKnott]

Any fields that make reference to prior year filings can simply be left blank as they are not applicable.

[@DanielGarcia-kk4bg]

@@JasonDKnott thanks

[@adityayadav7029]

Do you need to file 966 if it is a single member LLC with s-corp election?

[@donttread5414]

Can the dissolution date be the same date as the resolution? Example: On this date of 12/31/2022 we approve the dissolution effective 12/31/2022

[@JaimePeña-i4p]

Hi Jason, I have filed the articles of dissolution in Florida for a C-Corp on Jan 24 2022 but as I was waiting until now to file the federal final return. I see on Form 966 instructions that f966 must be filled within 30 days after the resolution or plan is adopted to dissolve the corporation. What should I do in this case? Thank you.

[@top5showww]

Hi Jason! 1. If the company incorporated in Sept 2021, adopted dissolution on Dec 28, 2021, & did not file a 2021 tax return yet, what would the company put in box 6 & 7a? 2. Do you need to file the 2021 tax return first before filing Form 966? 3. How would the company get a certified copy of the resolution?

[@JasonDKnott]

If this is a newly formed entity that was dissolved in the same calendar year, then you can leave 6 and 7a blank because there is no prior tax period. The IRS can see the date you entered into Box 1 to verify that the year of incorporation is the same year the entity is dissolved.

[@elephantear7659]

Great info, thanks. How do I "file" the form, do I mail it to the IRS or include it when I do my taxes, but this form needs to be given to them within 30 days.. Thanks!

[@JasonDKnott]

The form should be paper filed and mailed to the IRS within the 30 days. There is no requirement to attach the Form 966 to your Form 1120.

[@elephantear7659]

@@JasonDKnott ok great, thank you!

[@jawhite5555]

@@JasonDKnott Is there a specific address for each state. I cant find a direct address to send the form 966 and 1120

[@Worldly40]

Thanks for the video. Will the cash paid out to the shareholders be taxed at the final return? Or only the shareholders pay capital gain taxes on their own returns?

[@muhammaddfaheem4566]

Is there an e-file option for Form 966?

[@JasonDKnott]

Not currently. The Form 966 must be paper filed with the IRS.

[@muhammaddfaheem4566]

@@JasonDKnott what your fee for this service?

[@jayaramperiyasamy8958]

Hi Jason, It's very helpful.. thank you!

[@JasonDKnott]

Glad it was helpful!

[@al-yemenimarket2747]

I started a corporation in early 2023, and closed it in august 2023, so I need to file form 966 after 30 days. My question is do I file form 1120 for the the year 2022 or just wait until next year and file form 1120 for the year 2023. In other words, can I file an 1120 short form using 2022 tax return as final. Or can I wait until next year.

[@RomilCPatel]

I wondering the same thing. Were you able to find an answer to this?

[@thomasbyrne3735]

Hi Jason, very informative! I do have a question about completing the form 966 for a LLC taxed as an S Corp. How do you complete the lines such as date incorporated, number of shares, etc. that specifically relate to a corporation but not an LLC? Thank you for your thoughts. Tom

[@JasonDKnott]

You can use the date the S election was approved as the date of incorporation, and the number of LLC units issued and outstanding per the LLC operating agreement.

[@artmcdonald699]

Thank you, very helpful!!!

[@JasonDKnott]

You're welcome!

[@le3aerialphotography870]

Thanks, very helpful.

[@JasonDKnott]

Glad it was helpful!

[@bigstaha]

Should have included a DE 274 dissolution

[@sajibhawladar6922]

Hi