Tax Tip 2022-122: What business owners need to do when closing their doors for good

IRS Tax Tips August 10, 2022
Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams/Consumer Alerts The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News IRS Resources Contact Your Local IRS Office Filing Your Taxes Forms & Instructions Frequently Asked Questions Taxpayer Advocate Service Where to File IRS Social Media	Issue Number: Tax Tip 2022-122 What business owners need to do when closing their doors for good There are a few things business owners need to do before they close their business. Of course, they need to fulfill their federal tax responsibilities. It's also important to notify the IRS of their plans. Business owners must take these steps when closing a business: File a final tax return and related forms. The type of return to file and related forms depends on the type of business.   Take care of employees. Business owners with one or more employees must pay any final wages or compensation, make final federal tax deposits and report employment taxes.   Pay taxes owed. Even if the business closes now, tax payments may be due next filing season.   Report payments to contract workers. Businesses that pay contractors at least $600 for services including parts and materials during the calendar year in which they go out of business, must report those payments.   Cancel EIN and close IRS business account. Business owners should notify the IRS so they can close the IRS business account.   Keep business records. How long a business needs to keep records depends on what's recorded in each document. IRS.gov has information to help guide business owners through the process of shutting down.  Small businesses and self-employed taxpayers can find information including: What forms to file How to report revenue received in the final year of business How to report expenses incurred before closure Business owners can also get helpful information on declaring bankruptcy, selling their business and terminating retirement plans. Share this tip on social media -- #IRSTaxTip: What business owners need to do when closing their doors for good. http://ow.ly/ZOfq50KbJYC Back to top           Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.

 

---

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need to use your email address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com. This service is provided to you at no charge by the Internal Revenue Service (IRS).

---

This email was sent to business.solutions.ve@gmail.com by: Internal Revenue Service (IRS) · Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington DC 20535