Personal Bankruptcy 501c7 dissolution - who owns the assets?

[jgbrier]

If a 501C7 were to dissolve and the sale of property exceeded the money owed to creditors would the balance of the proceeds belong to the members of the organization or would they revert to the AG as with a 501C3?

 

[Michael Wechsler]

This is a great question. My thoughts, and I am not a tax specialist, would be that the excess would be a taxable distribution to the members (as the not for profit status may be lost.) I'd speak to a tax specialist (we are getting one here soon) or call the IRS directly and ask a hypothetical question.