Final corporation return

[JJStephens]

I don't do many corporations (two, to be precise). Both are very small and simple. I hope someone can give me some guidance with doing a final for one of them.

Client has operated a very small corporation (annual revenues have averaged less than $10,000) for many years. He decided to shut it down as of 12/31/10. The only asset as of 12/31 was $261 in the checking account. What is the best way to distribute that and report it on the 1120?

Client was the sole owner and never issued any stock.

[Pacun]

I don't do many corporations (two, to be precise). Both are very small and simple. I hope someone can give me some guidance with doing a final for one of them.

Client has operated a very small corporation (annual revenues have averaged less than $10,000) for many years. He decided to shut it down as of 12/31/10. The only asset as of 12/31 was $261 in the checking account. What is the best way to distribute that and report it on the 1120?

Client was the sole owner and never issued any stock.

There is another posting about dissolution that was not approved by NY, and they filed a final return. To me, they should amend the old return and file this year. Going back to your question...

I am assuming that we are talking about a calendar year corporation.

If someone comes to you and tells you... I decided to get divorced on December 31, 2010 and I submitted the divorce papers that day, will you file as single? The answer is no.

Why will you file a final return when the corporation existed on January 1, 2011?

Assets are not a big deal since they are so little. I wouldn't worry much about it.

[schirallicpa]

The entity is probably still in existence in 2011, right? Did they file paperwork with their state for dissolution of the corportion? If they hadn't yet, then 2010 is not the final return. If they get it done now, they will have a short year final return. (I too am assuming they have a calander year.) The assets are distributed to the stockholders. Is it an "S"?

I'm the one who has the problems in NYS with the state not allowing dissolution for 2 corps due to their having outstanding tax liabilities. We have decided we must file returns again this year, due to the fact that NY shows them as active corps, and therefore requires a franchise fee.