united-states, taxes, s-corporation, paperworkAfter two incredibly difficult years, I decided to dissolve my first corporation (will try again someday). I filed all the required state dissolution paperwork, but I was not aware that I needed to file additional paperwork with the IRS until a couple days ago. My understanding is that I need to file a Form 966 to notify the IRS of the dissolution, which states that it needs to be filed within 30 days of the dissolution. The dissolution date that I informed to the state was August 31. Now, more than 90 days have passed. Should I use the August 31 date on my Form 966 or today’s date?
I am not a lawyer, but I have filed late paperwork upon joining a non-profit more than once. There’s nothing like going through a stack of unopened mail hoping to find donations and finding a bunch of letters from the IRS. :)
Above all honesty. That’s not a moral statement. That is just practical advice. The IRS could charge you a few hundred for being late, but experience has shown them to be lenient when they see you as forthright and doing the best you can. The last thing you want is for them to cross-reference with the state and find a much earlier date than you reported to them.
This site http://www.avvo.com/legal-answers/am-i-required-to-send-a-966-form-to-the-irs—i-ha-591054.html encourages you to attach a letter explaining why you are late. Ignorance is not an excuse, but they do have to triage which cases to investigate further. Being honest and open in the letter indicates you have nothing to hide and saves them the trouble of an audit. It’s no more fun for them than it is for you.
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