870.1 Stockholders Liable for Tax When Business Operates After Charter Cancelled.

When a business continues operating, after cancellation of the corporation charter as a result of non- payment of license fee, the stockholders are required to file a Partnership Return, and each stockholder/partner is liable for income tax on his or her individual share of the profits, as provided in Section 12–6–510. 117.870.2. Reporting Final Income When Planning to Cease Doing Business in State. A taxpayer planning to cease doing business in this State by the incorporation of an existing business or, in the case of a corporate taxpayer other than a subsidiary corporation, by the dissolution or surrender of its Charter, shall report all items of income as described in Regulation 117–670. HISTORY: Added by State Register Volume 27, Issue No. 6, Part 2, eff June 27, 2003.