Legal dissolution under state law is not required for a liquidation to be complete for tax purposes.

Question

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According to the IRS, legal dissolution is not required for a liquidation to be deemed complete for tax purposes. The determination of whether a liquidation is complete or not depends on the facts and circumstances of each case. However, it is recommended that companies consult with legal and tax experts to ensure all requirements are met.

Legal Dissolution Under State Law Is Not Required for a Liquidation