Originally Posted by goldiland
My question is whether or not 2013 is my final tax year or 2014 is my final tax year. I'm filing the 966 - Corporate Dissolution paperwork with the IRS this week .
I guess 2013 is the final tax year for the S corp; A corp remains in existence following dissolution, but only for the purposes of winding-up its affairs and liquidating. "Winding-up" is the time in which the corporation collects its assets, discharges liabilities and conducts other acts necessary to finalize its affairs. Lastly, liquidation occurs when the corporation distributes its remaining assets to the shareholder(s). an S corp is regulated as a corporate entity under state law but allowed pass-through taxation with IRS approval. As a result, dissolving and liquidating an S corp must be done in accordance with corresponding laws in the state in which the S corp is registered to operate. State business codes specify the procedures corporate managers must follow to execute the legal termination and asset liquidation of an S corp. Liquidate the assets of the S corp. Liquidation includes distributing and selling property and other assets the S corp owns. The proceeds from the sale or distribution of property must go toward paying all outstanding debts and obligations the S corp holds. Creditors, owners and members are eligible to receive proceeds from property liquidation. However, in many states, creditors have first priority to claim proceeds from property sold to settle debts. The owners of the S corp have the right to receive property or proceeds from property liquidation only upon the discharge of all outstanding obligations to creditors. You need to file the final tax documents with the IRS. A dissolving S corp is required to file form 966 with the IRS within 30 days of adopting a corporate resolution to dissolve and liquidate the S corp. Form 966 requires identifying information about the dissolving S corp including name, address and incorporation date. Further, you need to file the final income tax return on form 1120S for the S corp within 3 months after the dissolution date. The IRS requires the S corp to file the final return by the 15th of the third month after dissolution.