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File a Form With the State In those cases, the partnership should file Form GP-4, Statement of Dissolution, when the partnership dissolves. Filing a Statement of Dissolution will help make clear that your partnership has ended and limit your liability.
When a partnership business is terminated, partners are expected to pay taxes on the taxable gain distributed to them upon liquidation of current and fixed assets.
Tax Return Reporting The partnership undergoing a technical termination has to file two short-year returns, and the date of the transaction involving a sale or exchange of partnership interest that triggers a technical termination becomes the close of the tax year for the old partnership.
The partnership tax return is generally due by the 15th day of the third month following the end of the tax year. See the Instructions for Form 1065, U.S. Return of Partnership Income.