Form 996 instructions 2025

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Line 10: Sections of the Code under which the corporation is to be dissolved or liquidated. In this line, youll identify the code section under which the corporation is to be dissolved or liquidated.
There is no direct Form 966 penalty for non-filing or late filing, but by not properly notifying the IRS of a dissolution or liquidation, it may result in collateral damage and other penalties.
In this article Step 1: Hold a Board Meeting and Obtain Shareholder Approval. Step 2: File a Certificate of Election (If Required) Step 3: Notify Creditors and Settle Debts. Step 4: Handle Tax Obligations. Step 5: Distribute Remaining Assets. Step 6: File the Certificate of Dissolution Final Documents. Conclusion.
Discharge of qualified real property business indebtedness However, the cancellation of debt must be reported to you and the IRS on Form 1099-C. You could then exclude the cancellation of debt with Form 982.
Within 30 days after the adoption of any resolution or plan for or in respect of the dissolution of a corporation or the liquidation of the whole or any part of its capital stock, the corporation shall file a return on Form 966, containing the information required by paragraph (b) of this section and by such form.

People also ask

The form must be filed by a corporation that has decided to dissolve or liquidate its business. This can be due to a variety of reasons, such as the completion of its business purpose, a merger, or a decision to cease operations.
Form 966 is typically filed by C corporations (including S corporations that were previously C corporations) that have made the decision to terminate their existence and wind up their affairs.
You must file Form 966, Corporate Dissolution or Liquidation, if you adopt a resolution or plan to dissolve the corporation or liquidate any of its stock.

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