What should I consider before filing if my organization is being terminated?
510 views | Last modified 6/26/2023 2:18:14 AM EST

If your organization is filing your final return, there is certain information you will need to disclose. This information will differ depending on the 990 series return you are filing.

Form 990 filers should do the following:

• In header area B of page 1, check the Final return/terminated box;
• 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?"; and
• Complete Schedule N (Form 990 or 990-EZ), Liquidation, Termination, Dissolution, or Significant Disposition of Assets. 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 the assets.

Form 990-EZ filers should do the following.

• In header area B of page 1, check the Final Return/terminated box;
• In Part V, Line 36, answer "Yes" to "Did the organization undergo a liquidation, dissolution, termination, or significant disposition of net assets during the year?"; and
• Complete Schedule N (Form 990 or 990-EZ), Liquidation, Termination, Dissolution, or Significant Disposition of Assets. 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 the assets.

In addition to the points mentioned above, you will need to provide a certified copy of your articles of dissolution or merger, resolutions, and plans of liquidation or merger along with your Form 990 or 990-EZ. You may also need to provide other documentation requested in Schedule N.

Form 990-PF filers should do the following.

• In header area E of page 1: If all assets were distributed to a qualified public charity (see Instructions for Form 990-PF), check the box for termination of private foundation status under section 507(b)(1)(A);
• In header area G of page 1: Check the Final return box;
• Attachments: Prepare an attachment to Form 990-PF that includes
  • A description of each transaction you made in the conclusion of your organization's activities
  • A certified copy of the liquidation plan, resolution, etc. (if any) and all amendments or supplements that weren't previously filed
  • A list showing the names and addresses of each recipient of assets
  • An explanation of the nature and fair market value of the assets distributed to each recipient
  • For a complete corporate liquidation or trust termination, attach a statement as to whether a final distribution of assets was made and the date it was made (if applicable)