How do I fill out Form 966?

The steps to complete this form are as follows:

Write your business’s name, address, and EIN at the top of the form.
Complete Box 1 with the date of incorporation.
Complete Box 2 with the location of incorporations.
Use Box 3 to indicate whether this is a complete or partial liquidation.

When Should Form 966 be filed?

File Form 966 within 30 days after the resolution or plan is adopted to dissolve the corporation or liquidate any of its stock. If the resolution or plan is amended or supplemented after Form 966 is filed, file another Form 966 within 30 days after the amendment or supplement is adopted.

What should I include with Form 966?

What Questions does IRS Form 966 Ask?

Name of corporation.
Employer Identification Number.
Address.
Type of return 1120 1120-L 1120-IC-DISC 1120S.
Date incorporated.
Place incorporated.
Type of liquidation (Complete or Partial)
Date resolution or plan of complete or partial liquidation was adopted.

Does LLC need to file Form 966?

An LLC that is dissolving its business must file Form 966. Form 1040 (U.S. Individual Income Tax Return) and Schedule C (Profit or Loss from Business (Sole Proprietorship) are for a single-member LLC.

What is a section 332 liquidation?

332 provides tax-free treatment to the corporate shareholder’s gain or loss from the receipt of the subsidiary’s property in liquidation, and Sec. 1504(a)(2) (generally 80% by voting power and value) and the distribution was made in complete cancellation or redemption of all the stock of the liquidating corporation.

What happens if I don’t use my EIN number?

An EIN becomes the permanent federal taxpayer identification number for that business once it is assigned. An EIN cannot be reused or reassigned to another organization. Even if it is never used to file federal tax returns or other government documents, the IRS cannot cancel an EIN.

What do you need to know about form 966?

A corporation must recognize gain or loss on the distribution of its assets in the complete liquidation of its stock by valuing shares at fair market value, per Form 966. Exceptions can apply to a liquidation of a subsidiary and to a distribution that is made according to a plan of reorganization.

Where to put dissolution plan on IRS Form 966?

Write or enter any dates on which amendments to the dissolution plan were adopted on line 9. Write or enter the section of the Internal Revenue Code under which the corporation is to be dissolved or liquidated on line 10, such as “section 331” for a corporation or “section 332” for a subsidiary.

Where do you enter the common parent on IRS Form 966?

If “Yes,” write or enter the name of the common parent under which the consolidated return was filed and its employer identification number, and the IRS Service Center where it was filed on lines 7c-7e. Or put “e-file” on line 7e if the return was filed electronically.

Where do you put e file on IRS Form 966?

Write or enter the IRS Service Center where the immediately preceding tax return was filed on line 5. Or put “e-file” if the return was filed electronically. Write or enter the last month, day and year of the immediately preceding tax year and the final tax year on lines 6 and 7a respectively.

Are there penalties for not filing Form 966?

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. This is especially true when there are foreign corporations involved, which may lead to Form 5471 penalties and an IRS CP15 Notice.