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Merger question

Technical topics regarding tax preparation.
#1
Posts:
152
Joined:
21-Jul-2014 11:12am
Location:
Charlotte, NC
We have a client that one of our partners picked up this year and they did some sort of tax free merger in November 2019. The way they have given us the K-1 information was that we initially received a K-1 that was marked as final with the old company name and EIN. We then received a second K-1 with the surviving company name and EIN and the client indicated that the new K-1 replaces the first one we received. Even though it is a separate EIN and name.

The partner at our firm that picked them up said he talked to them and that because of the type of merger they did, everything is only reflected on the new company and there will not be a K-1 for the old company.

My understanding when a merger happens, tax free or otherwise, is that the old company would file a final year return for the portion of the year prior to the merge and list all of its income and deductions and then the new/surviving company would file a return for the second part of the year and list all the income and deductions for then.

Is there a type of merger/situation where the old company files nothing and the new one takes over with a new name and EIN?
 

#2
sjrcpa  
Posts:
2791
Joined:
23-Apr-2014 5:27pm
Location:
Maryland
Partnership or S Corporation?
 

#3
Posts:
152
Joined:
21-Jul-2014 11:12am
Location:
Charlotte, NC
Partnership
 


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