My organization was terminated. What do I need to know to file the final 990 return?
371 views | Last modified 11/3/2022 1:08:52 AM EST |

When an organization is terminated, certain information must be disclosed. Follow the steps below to file your organization’s final Form 990. 

  1. In the header area B of page 1, check the Final return/terminated box and make sure the total assets (Part X Line 16 column B) equal zero. 
  2. In Part IV, Line 31, answer "Yes" to "Did the organization liquidate, terminate, or dissolve and cease operations?"
  3. In Part IV, Line 32: If applicable, answer "Yes" to "Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets?”
    • Any organization that answered “Yes” on lines 31 or 32 ( Part IV - Checklist of Required Schedules) of Form 990 is required to complete the corresponding parts of  Schedule N. 
  4. Complete Schedule N (Form 990 or 990-EZ), Liquidation, Termination, Dissolution, or Significant Disposition of Assets. 
    •  Part I of Form 990 Schedule N - Liquidation, Termination, or Dissolution - Include a description of the assets and any transaction fees, the date of distribution, the fair market value of the assets, and information about the recipients of these assets.
    • Part II of Form 990 Schedule N - Sale, Exchange, Disposition, or Other Transfer of More Than 25% of the Organization’s Assets - this should be used by organizations that file Form 990 or Form 990-EZ to report a liquidation of more than 25 percent of their net assets by a sale, exchange, or other disposition.

If your organization is liquidating a part of its assets, you must select “Yes” on lines 31 or 32 of Part IV, but you don't necessarily need to check the Final return/terminated box of header area B on page 1.

Schedule N must be completed if your organization selects Yes” on lines 31 or 32 of Part IV.

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