C Corp final asset sale

[David]

H&W C Corp entered into an asset sale and sold all assets in the latter part of 2015. H&W retired and expect 2015 to be the final year of the C Corp. The C Corp reports on the accrual basis. 

Attorney fees and other expenses paid in 2016 were accrued for 2015. A loan from the H&W to the corporation was paid back by the corporation in May 2016. 

No dividends were paid out in 2015.  The H&W will take final distributions in 2016, after the extended 1120 is completed.

I don't think 2015 can be the final tax year since dividends/distributions weren't paid until 2016. Or can the 1120 file a final tax return in 2015 and send 1099-DIVs in 2016 to be reported on the H&W's 2016 personal tax return?

Thanks.

 

[OldJack]

Technically a corporation (C or S) is required to file a federal tax return each year until legally dissolved by the secy of state of incorporation regardless of taxable income.  It is common however to file a final federal tax return in the year of liquidating dividends with no assets remaining.