Final Tax Return C Corp I am preparing the books for filing a final 2012 return (1120).
The private c corporation has a few shareholders. Recently the shares were repurchased at a steep discount in anticipation of dissolution as company did not make any profits. There is some money remaining for final distribution to two key shareholders ($40k) plus a buffer amount for expenses ($10k). These funds will not be sent out until early 2013. The buffer amount will be paid out for legal and accounting work.
1. Do I report the legal/accounting payments on a 1099 for 2012 even though we may pay those bills in early 2013?
2. What balances should I report on the final return?
Thanks in advance! |