IRS Form 966 Corporate Dissolution or Liquidation

Form 966 Instructions

Follow these IRS Form 966 instructions to notify the government about the upcoming dissolution of the corporation or stock liquidation:

1. Identify your corporation . You have to indicate its full name, the correspondence address the IRS can use to send you formal letters and notices in the future, and the correct employer identification number. Put a tick in the box to specify the number of the tax return you are filing with this document.

2. Write down the date and place of incorporation - these details are supposed to match the records of your company. Check the box to confirm whether the liquidation of stock is partial or you have planned a complete dissolution of your corporation.

3. Enter the date when your corporation has agreed upon the terms of the resolution or plan you enclose with the form . Add the address of the service center where you sent the latest income statement. In case the previous filing was done electronically, state it in the form instead.

4. Clarify the last day of the tax year you described in your previous tax return and check the box if you filed a consolidated income statement . If the answer is yes, you have to indicate the name and the employer identification number of the corporate entity that controls your corporation and specify where the paperwork was submitted.

5. Include the total number of outstanding shares accurate at the time you came up with the liquidation plan, state when the adjustments to the plan were made if applicable, elaborate which provisions of the tax code guide you in the process, and write down the date you submitted Federal Form 966 the last time if you need to.

6. Once you are done filling out the paperwork, you need to certify the instrument - sign the form and add your title and the actual date . This statement can be signed by the individual with the authority to certify similar documentation - it can be the president of your corporation, its treasurer, chief accounting officer, or a tax officer who was specifically authorized to file the documentation. In some instances, the corporation delegates the authority to submit the form to a fiduciary - the latter is obliged to add their signature to the instrument.

Where to Mail Form 966?

Instructions for Form 966 state the taxpayer responsible for preparing and submitting this document is obliged to file it alongside their regular income statement - check the guidelines for your tax return to find out the IRS Form 966 mailing address, it will depend on the state where your corporation or cooperative conducts its operations.

Remember that Form 966 filing requirements demand the corporation to inform the fiscal authorities about your decision to dissolve your legal entity within a month. Your intention must be established via a resolution or detailed plan, and the same regulations apply to your commitment to liquidate the stock of the corporation. Note that if later you modify the initial plan or resolution, it is necessary to file yet another Tax Form 966 - the same timeframe is relevant in this situation.