Form 966

[TaxBird]

I was wondering if a Form 966 is required with all dissolutions?

According to TTB, "a corporation must file Form 966 if it adopts a plan to dissolve the corporation or liquidate any of its stock".

The form also requires that a certified copy of the resolution or plan.

I have an S-Corp that has gone out of business. It's a small business and no one kept the corporate minute book much less adopted a 'plan' of any kind, at least nothing in writing anyway.

The fact that a certified copy of the plan is required tells me that maybe I'm mistaken and it's for corporations of a certain size.

How old is this form anyway? Seems to me I've never attached this thing in the past so either it's new or it's old & forgotten because I've filed many final year returns and never been contacted regarding its absence.

I have the final year return ready (sans the form 966) but I hestitate to send it in because I'm not sure whether or not that form is needed. If anyone can steer me in the right direction, I would sure appreciate it.

[JON]

Form 966

has been around forever. What is certified??? I had an attorney say it means signed by the correct authority from the corporation. I think it becomes valuable in C Corp allowing the distributions to stockholders to be final liquidating distributions established as such for Sch D treatment agains stock basis. Also has to do with the final cutoff and return.

[taxmandan]

TheIRS seems to ignore the requirement for Form 966 upon dissolution of a corporation. I've had clients say they dissolved the business 10 months ago, and since the 966 is supposed to be filed within 30 (or is it 60) days of the decision to dissolve it was too late anyway. Of course that all may change with your client, theIRS may have decided to punish the miscreants who dare fail to file Form 966 in a timely manner!

[TaxBird]

I did a little more research

and discovered that like you guys said, the IRS does not enforce Form 966 filing. Further, while they 'like' for you to file it within the 30 days, that's not really enforced either. So given all that and in looking at the form, I wonder what this thing preserves.

Anyway, I also discovered that dissolution papers filed with the state suffice as the 'plan' and that the dissolution date with the State works as the dissolution date.

Sew, it looks like I will probably file this baby after all. (I know, but it makes me laugh to spell it that way.)

Thanks to everyone who responded on this nice summer day.