WTM
Level 2
‎12-08-2020 12:47 PM

I'm closing an S Corp in dissolution on a short year for 2020. There is only a single asset that which was a franchise fee that has been amortized over 10 years. It never used section 199A so there is no recapture necessary. The single shareholder is dissolving the business, not selling it so would I use form 4562 and show zero income received?

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sjrcpa
Level 15
‎12-08-2020 01:18 PM

4797 with sale price -0-.

File Form 966.

That fee should probably have been amortized over 15 years.


The more I know the more I don’t know.

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WTM
Level 2
‎12-08-2020 01:23 PM

Thank you. The fee was amortized over 15 years. This year is 10 of the 15 years.

The 966 has been mailed. Do I still file it with the return? 

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sjrcpa
Level 15
‎12-08-2020 01:31 PM

I'm not sure. I don't do them often. What do the instructions say?


The more I know the more I don’t know.
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WTM
Level 2
‎12-08-2020 02:27 PM

That's what I was following. Thank you. 

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JJK
Level 3
‎12-12-2020 08:02 AM

Due to the backlog of IRS, I will be e-filing Form 966 along with the tax return to be on the safe side.  However, I will add a note saying a paper form 966 was mailed MM/DD/YY.   

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WTM
Level 2
‎12-13-2020 09:02 PM

Thank you, JJK and sjrcpa. I appreciate your assistance.

sjrcpa
Level 15
‎12-16-2020 05:16 PM

You're welcome.


The more I know the more I don’t know.
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