We're filing 2019 Form 1120 for a C corporation (XYZ Inc). In January 2017 my cofounder and I incorporated XYZ Inc in Delaware and registered it as a foreign corporation in Connecticut. We dissolved and withdrew XYZ Inc in December 2019.

Given that we use the cash method of accounting, how should we report XYZ Inc's 2020 expenses related to winding up its affairs? For example: Delaware filed our certificate of dissolution in December 2019 but didn't bill our credit card until January 2020; we have outstanding tax expenses that we'll pay when we file 2019 Form CT-1120; and in 2020 we've paid some bank fees and internet expenses as part of settling and closing the business. Should we just include such 2020 expenses (as deductions) on our 2019 Form 1120 and mark 2019 Form 1120 as our final return?

And what if XYZ Inc incurs more expenses (as part of winding up its affairs) after we file 2019 Form 1120 (since Delaware corporations continue for 3 years after dissolution)? How would we report those expenses?


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