My organization was terminated. What do I need to know to file the final 990 return?
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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.
- 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.
- In Part IV, Line 31, answer "Yes" to "Did the organization liquidate, terminate, or dissolve and cease operations?"
- 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.
- 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.