Form 966

[oceanlovin'ea]

I have a client with an s corporation in another state. Part way through the year he moved to this state and formed a new LLC taxed as an s corp. The first corp was inactive till the end of the year as far as income but was tying up loose ends.

We transferred the assets of the old corporation to the new corporation.(He needed his equipment to work here). The liabilities (credit card debt) was very high. Since the shareholder was personally responsible for those cards, the debt transferred to him. (He filed bankruptcy later in the year and that was included in the bankruptcy)

Since this was more of a transfer than a liquidation, is it necessary for me to file form 966? It is very late being filed anyway as I didn't realize that it needed to be filed within a month of the determination to close company. It is difficult to answer some of the questions since it is not a liquidation.

Linda

[JG EA]

Check out this thread:

http://www.thetaxbook.com/forums/showthread.php?t=15554&highlight=Form

Another unscientific point - a client once told me that they just called the IRS to dissolve their corp. So, maybe it isn't so necessary as we think?

[oceanlovin'ea]

Thanks

Thanks for the thread to check out.

My client is a small one man business and I think I will just ignore the Form 966. I now know that in the future this needs to be done within 30 days.

Linda