I have a client who sold her business in October 2013 (S-Corp) and subsequently legally dissolved the business in late December. There was poor communication between the attorney that did the dissolution and myself and there are still wind-down activities going on which will cross-over between 2013 and 2014. All operations have ceased in 2013 at the time of the sale however, there are still certain liabilities which had yet to be settled at December 31, 2013 and final distributions to be made to the shareholders once all remaining obligations are paid (most of the cash from the sale was distributed at the time of sale)

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 .