Closing a Small Business Corporation

[AnmarieA]

I have a client who is no longer an independent automotive distributor since May 2024 where the manufacturer redistributed his route to a new distributor. My client sold his Tool Truck and returned "usable" inventory to the manufacturer for credit. The client continues to have collections that arise and is required to the monthly Sales Tax Returns for collections on his outstanding accounts receivable (no new business), as his sales tax returns were filed on a "collection" vs sales basis while operating his business the last 30+ years. The client expects to be fully collected and/or writing off his remaining accounts receivable by April/May 2025. The collection activity has been minimal the last several months and the outstanding AR is less than less than $30K. 

My question is can I file the business 1120-S for 2024 as the final return and any residual collections in 2025 can be reported on a Sch C as a sole proprietor. I do not think an 1120-S would be warranted since he no longer conducts business and his collections come primarily from other distributors who collect on his behalf in the territory. 

Professional feed back is welcome!

Hope tax season is going well........where has the time gone as I am way behind............

[sjrcpa]

Who are the checks being made out to?

Most banks won't allow an individual to deposit a check made out to a corporation into the individual's account.

And, shouldn't the entity be legally dissolved with the state? You can't do that retroactively.