I will be dissolving our club next week before EOY 2005, I
know we will need to file the "final" tax reports although
is there just a tax reporting fee I can pay to help produce
the 2005 forms we will need? Secondly, other than selling
the securities and withdrawling all the members, is there
anything else I will need to do?

If you are just starting the dissolution process now, you are probably too late to complete the process in 2005. Your club will be filing 2006 tax returns as well. That's because you will not be able to complete your withdrawals before the end of the year. I would expect that you currently own at least one stock that has gone ex-dividend with a payment date in January. You should be receiving interest/dividend income on your cash balance on 12/31. Your stock sales next week won't settle until Friday (at the earliest) and probably not until 2006, so your broker may not release the cash.

 

So, your members will report their shares of the club's income/gain/loss on their 2005 tax returns, but probably will not report their personal gain/loss on dissolution of the club until they file their 2006 tax returns. You should review the following article for more information on dissolving an investment club:

 

 

Ira Smilovitz