IRS Creates Online Resource for Closing a Business, Oct. 29, 2020

Unfortunately, many small business owners have been forced to close due to the economic fallout of the Covid-19 pandemic. The IRS has now created an online resource giving business owners step-by-step information about how to close a business. The website reminds taxpayers that they are required to file a final tax return for the year the business closes. The relevant form will depend upon the type of business entity involved. Employers are also required to pay employees all compensation that they're owed—and must pay related employment taxes on those wages. They must also report any payments in excess of $600 made to independent contractors. The business should also close all business accounts and cancel their EIN by sending a letter to the IRS. For more information on the tax obligations of employers, visit Tax Facts Online.