Under Notice 2007-55, discussed below, the IRS stated in part that it would challenge any assertion by a taxpayer that Code Sec. However, for the reasons set forth below, many tax professionals believe that Notice 2007-55 incorrectly interprets Code Sec.
person by a REIT (whether or not domestically controlled) attributable to a sale or exchange by the REIT of a USRPI will be treated as gain recognized by the non-U. person from the sale of a USRPI, which will be subject to FIRPTA tax.
897(h)(1) should not apply to liquidating distributions from DCRs to non-U. 897(h)(1), and that such section only applies to non-liquidating distributions, and not to liquidating distributions. 897(h)(1) did not apply to distributions in complete liquidation of a DCR to such non-U. taxpayer and (ii) issue regulations to clarify that the term “distribution” under Code Sec.State laws commonly require the managing parties of an S corporation to initiate state dissolution procedures only when authorized by shareholders. Stop conducting business on behalf of the S corporation being dissolved.The focus of the managers of an S corporation must turn to legally dissolving the business and liquidating assets within a reasonable period of time.Dissolution does not exempt the S corporation from legal proceedings that predate the start of the termination process. Notify each creditor in writing of the dissolution of the S corporation.
State laws typically require managers of the dissolving S corporation to inform all creditors with pending claims against the S corporation of the decision to dissolve. Liquidation includes distributing and selling property and other assets the S corporation owns.
Notifying each creditor helps identify the rightful claimants of any proceeds from liquidated company assets. The proceeds from the sale or distribution of property must go toward paying all outstanding debts and obligations the S corporation holds.