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Title 26 — Internal Revenue CodeRelease 119-73not60

§6043 Liquidating, Etc., Transactions

Title 26 › Subtitle Subtitle F— Procedure and Administration › Chapter 61— INFORMATION AND RETURNS › Subchapter A— Returns and Records › Part III— INFORMATION RETURNS › Subpart B— Information Concerning Transactions With Other Persons › § 6043

Last updated Apr 5, 2026|Official source

Summary

Corporations must file a report within 30 days after they approve a plan to dissolve or to liquidate all or part of their stock. The report must give the plan’s terms and any other information the tax official (the Secretary) requires. If the Secretary asks, the corporation must also report details about liquidation payments to shareholders — the name and address, how many and what kind of shares they owned, and how much they were paid, or the fair market value on the date if property (not money) was given. Organizations that were tax-exempt under section 501(a) for any of their last 5 taxable years before a liquidation, dissolution, termination, or big cutback must file similar reports, except churches, their auxiliaries, church conventions or associations, and organizations that are not private foundations and normally have gross receipts of not more than $5,000 each year. The Secretary can also excuse some organizations or accept a return from the employer for plans described in section 401(a). A report is also required when control of a corporation is acquired or when its capital structure is recapitalized or otherwise substantially changed. Penalties for not filing are in sections 6652(c) and 6652(1).

Full Legal Text

Title 26, §6043

Internal Revenue Code — Source: USLM XML via OLRC

(a)Every corporation shall—
(1)Within 30 days after the adoption by the corporation of a resolution or plan for the dissolution of the corporation or for the liquidation of the whole or any part of its capital stock, make a return setting forth the terms of such resolution or plan and such other information as the Secretary shall by forms or regulations prescribe; and
(2)When required by the Secretary, make a return regarding its distributions in liquidation, stating the name and address of, the number and class of shares owned by, and the amount paid to, each shareholder, or, if the distribution is in property other than money, the fair market value (as of the date the distribution is made) of the property distributed to each shareholder.
(b)Every organization which for any of its last 5 taxable years preceding its liquidation, dissolution, termination, or substantial contraction was exempt from taxation under section 501(a) shall file such return and other information with respect to such liquidation, dissolution, termination, or substantial contraction as the Secretary shall by forms or regulations prescribe; except that—
(1)no return shall be required under this subsection from churches, their integrated auxiliaries, conventions or associations of churches, or any organization which is not a private foundation (as defined in section 509(a)) and the gross receipts of which in each taxable year are normally not more than $5,000, and
(2)the Secretary may relieve any organization from such filing where he determines that such filing is not necessary to the efficient administration of the internal revenue laws or, with respect to an organization described in section 401(a), where the employer who established such organization files such a return.
(c)If—
(1)control (as defined in section 304(c)(1)) of a corporation is acquired by any person (or group of persons) in a transaction (or series of related transactions), or
(2)there is a recapitalization of a corporation or other substantial change in the capital structure of a corporation,
(d)For provisions relating to penalties for failure to file—
(1)a return under subsection (b), see section 6652(c), or
(2)a return under subsection (c), see section 6652(1).11 So in original. Probably should be section “6652(l).”

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1996—Pub. L. 104–188 substituted “Liquidating, etc., transactions” for “Liquidating; etc., transactions” in section catchline. 1989—Pub. L. 101–239, § 7208(b)(3)(B), substituted “Liquidating; etc., transactions” for “Returns regarding liquidation, dissolution, termination, or contraction” in section catchline. Subsec. (a). Pub. L. 101–239, § 7208(b)(3)(A), substituted “Corporate liquidating, etc., transactions” for “Corporations” in heading. Subsecs. (c), (d). Pub. L. 101–239, § 7208(b)(1), added subsecs. (c) and (d) and struck out former subsec. (c) which read as follows: “Cross Reference.—For provisions relating to penalties for failure to file a return required by subsection (b), see section 6652(c).” 1986—Subsec. (c). Pub. L. 99–514 substituted “section 6652(c)” for “section 6652(d)”. 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing. 1969—Pub. L. 91–172 inserted references to termination and contraction in section catchline, designated existing provisions as subsec. (a), and added subsecs. (b) and (c).

Statutory Notes and Related Subsidiaries

Effective Date

of 1989 Amendment Pub. L. 101–239, title VII, § 7208(b)(4), Dec. 19, 1989, 103 Stat. 2338, provided that: “The

Amendments

made by this subsection [amending this section and section 6652 of this title] shall apply to transactions after March 31, 1990.”

Effective Date

of 1986 AmendmentAmendment by Pub. L. 99–514 applicable to returns the due date for which (determined without regard to extensions) is after Dec. 31, 1986, see section 1501(e) of Pub. L. 99–514, set out as an

Effective Date

note under section 6721 of this title.

Effective Date

of 1969 AmendmentAmendment by Pub. L. 91–172 applicable to taxable years beginning after Dec. 31, 1969, see section 101(k)(2)(B) of Pub. L. 91–172, set out as an

Effective Date

note under section 4940 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 6043

Title 26 — Internal Revenue Code

Last Updated

Apr 5, 2026

Release point: 119-73not60