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What Business Owners Need To Do When Closing Their Doors For Good And The IRS

On Behalf of | Aug 10, 2022 | Tax Law |

When Your Client is Closing its Doors for Good & the IRS:

  • File a final tax return and related forms are Required for the year everything is closed.
  • Employees Must be paid their final wages/compensation and federal tax deposits must be made in the year of last payment.
  • Final employment tax returns (Forms 940, 941) must be filed and taxes must be paid.
  • Because taxes could be due the next filing season, pay in the year of closure to keep things cleaner.
  • Report payments to independent contractors to whom you paid at least $600 and Forms 1099 must be issued. Cancel EIN and close IRS business account. Transferring a business and not taking this step could be disastrous for the ‘new’ owners.
  • Keep business records.