Quick Quesrtion

Jan 12, 2012 1 Replies

A client, C corp with about 60 shareholders, has closed the business and disbursed the cash assets (physical assets long ago handled). The result is the dissolution of the corporation (attorney handling all that). My question is does the company have to issue a 1099B for the "sale" of the stock, or are there any other responsibilities to advise the shareholders as to tax reporting on their Schedule D.



Thanks,



I believe you will need to issue either 1099-DIVs for dividends. Check IRS Pub 17, Chapter 8. You can view it online at

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You also SHOULD have filed Form 966 when the plan to liquidate was adopted. If you failed to do that check the instructions for that form to see what you need to do now. I THINK, but am not certain, that you can send that form in late.

Good luck Gene E. Utterback, EA, RFC, ABA

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