Form 966 - Corporate Dissolution or Liquidation

Understanding IRS 966 Form

Form 966, also known as the Corporate Dissolution or Liquidation form, is used by corporations to notify the Internal Revenue Service (IRS) of a decision to dissolve or liquidate a corporation. It is a crucial part of a corporation's formal winding-up process, enabling it to settle its tax obligations correctly.

Where to File Form 966

Filing Form 966 involves both online and offline methods. Initially, you must download the 966 Form from the IRS website. Ensure to fill it out accurately, as it contains essential information regarding your corporation's decision to dissolve or liquidate.

After completing the form, you can file it electronically if your business has the required software that supports the IRS e-file. E-filing is the most efficient and convenient method and is increasingly becoming the standard for many corporations.

If e-filing isn't possible, Form 966 can be mailed to the IRS. The specific mailing address depends on the state where your corporation is based.

Where to Mail Form 966

The address to mail IRS 966 Form depends largely on the principal location of your business. Form 966 corporate dissolution or liquidation should be mailed to the same address you send your corporate tax return. The IRS website lists addresses categorized according to the corporation location for mailing various forms. Ensure to use the correct address to avoid delays in processing your dissolution.

While mailing, use a method that provides proof of delivery, such as registered mail or a courier service. This will offer you evidence that the IRS received the form in case there are any disputes or issues later.

How to Fill Out Form 966

Filling out Form 966 can be a bit complex, but with a careful approach, it's manageable. The form requires information like the corporation's name, employer identification number (EIN), date of incorporation, and details about the dissolution or liquidation plan.

Part 1

Enter your corporation's information such as the name, EIN, address, and the tax year ending month.

Part 2

Specify the type of action (dissolution or liquidation), date of action, and details of the adoption of resolution or plan. If the corporation has shareholders, a majority must consent to this plan.

Part 3

Provide information about any tax forms related to the dissolution that the corporation intends to file, such as Form 1120 or 1120S.

Part 4

If the corporation has changed its name or address since the last return was filed, indicate this here.

Part 5

Complete this section if the corporation has disposed of its assets or stock.

Signature

An authorized corporate officer must sign and date the form.