Sale of S Corp Shares

[erchess]

The owner of 30% of an S Corp is selling her shares to another owner effective today. I know how to handle this with the NC Secretary of State but I have two questions. First, does not the former owner still get a K-1 and second does not the IRS have to be notified, and if so how and by what deadline?

The S Corp has been inactive all year so its return will be a zero activity return.

[ChEAr$]

The owner of 30% of an S Corp is selling her shares to another owner effective today. I know how to handle this with the NC Secretary of State but I have two questions. First, does not the former owner still get a K-1 and second does not the IRS have to be notified, and if so how and by what deadline?

The S Corp has been inactive all year so its return will be a zero activity return.

Nothing I know of needs to be filed with IRS. The next tax return will record all shareholders. Since there is no profit (that is what you mean, right?) no worry about allocating per day/shareholder basis. But yes, former shareholder still gets a K-1.

However, what do you mean "handle with NC?" Down here we don't have to do anything with either Georgia or Alabama departments of revenue or secretary of state regarding change of shareholders.

[erchess]

Handle with NC

When we set up the S Corp we had to tell NC who the shareholders were so I am assuming they have to be notified of a change.

[BOB W]

The owner of 30% of an S Corp is selling her shares to another owner effective today. I know how to handle this with the NC Secretary of State but I have two questions. First, does not the former owner still get a K-1 and second does not the IRS have to be notified, and if so how and by what deadline?

The S Corp has been inactive all year so its return will be a zero activity return.

The selling shareholder's K-1 gets marked "Final". This is all IRS needs and should be all that is needed for any state. But I can only speak for NYS.

[erchess]

State of Confusion

As was very nicely pointed out by Harlan and Bob I was residing in the state of confusion when I thought I was residing in the state of NC. What I was remembering was the listing of the officers. I know that we had to do that when we created the Corp and I think changes are reflected on each year's annual report. But there's nothing due now. Thank you Harlan and Bob and I hope no reader is confused.