What are the tax consequences for liquidating a corproation

So rather than get immersed in the mudslinging, let’s just stick to good ol’ fashioned tax law talk, shall we?

However, prior tax liabilities will still apply and be subject to the Division of Taxation's review. -18 and other applicable provisions of the Law any officer or director of any corporation who distributes or causes to be distributed any assets in dissolution or liquidation to the stockholders without having first paid all corporation franchise taxes, fees, penalties and interest imposed upon said corporation, shall be personally liable for said unpaid taxes, fees, penalties and interest. The fact that it is the business’s final return is noted on the return (check the box for this purpose near the top of the form).Also, check the “final return” box on the Schedule K-1, No tax items need to be prorated for the period of time that the business was functional. “Liquidation Sale.” When you’re not involved, you can only guess what led up to it. the operation may be unsuccessful and not worth sustaining. an owner may have died and the family wants to liquidate the business…Whatever the reason, the process is essentially the same.

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