Final answer:
Nils Corporation must file a tax return for the current year even after adopting a liquidation plan. Additionally, it must file a tax return for the next year since the liquidation completes in January of that year, to account for all financial activities up until dissolution.
Step-by-step explanation:
In the context of U.S. taxation, Nils Corporation as a calendar year taxpayer must indeed file a tax return for the current year by the middle of April of the following year, even if it adopts a plan of liquidation. The liquidation process itself does not absolve the corporation from the responsibility of paying taxes and filing an income tax return for any part of the year in which it was in existence and conducting business. Therefore, the answer to the question is: 1) Yes, Nils Corporation must file a tax return for the current year.
Furthermore, since the final liquidating distribution occurs on January 5 of the next year, Nils Corporation will also be required to file a return for the next year to report the transactions related to the liquidation up to the date of completion. Thus, 3) Yes, Nils Corporation must file a tax return for the next year as well. This ensures that all the financial activities are properly reported to the government up to the time the corporation is officially dissolved.