Tax Requirements For Closing A Business

The tax implications closing a business vary depending on your type of business structure. You must file final state and federal tax returns for the year you go out of business. The chart below outlines typical IRS (but not state) actions for closing a business and forms for each action.

Action	Forms
Make final federal tax deposits	Electronic Federal Tax Paying System (EFTPS) Form 8109-B
File final quarterly or annual employment tax form	Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return Form 941, Employer's Quarterly Federal Tax Return Form 943, Employer's Annual Tax Return for Agricultural Employees Form 943-A, Agricultural Employer's Record of Federal Tax Liability
Issue final wage and withholding information to employees	Form W-2, Wage and Tax Statement
Report information from W-2s issued	Form W-3, Transmittal of Income and Tax Statements
File final tip income and allocated tips information return	Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips
Report capital gains or losses	Form 1040, U.S. Individual Income Tax Return Form 1065, U.S. Partnership Return of Income Form 1120 (Schedule D), Capital Gains and Losses
Report partner's/shareholder's shares	Form 1065 (Schedule K-1), Partner's Share of Income, Credits, Deductions, etc. Form 1120S (Schedule K-1), Shareholder's Share of Income, Credits, Deductions, etc.
File final employee pension/benefit plan	Form 5500, Annual Return/Report of Employee Benefit Plan
Issue payment information to sub-contractors	Form 1099-MISC, Miscellaneous Income
Report information from 1099s issued	Form 1096, Annual Summary and Transmittal of U.S. Information Returns
Report corporate dissolution or liquidation	Form 966, Corporate Dissolution or Liquidation
Consider allowing S corporation election to terminate	Form 1120S, Instructions
Report business asset sales	Form 8594, Asset Acquisition Statement
Report the sale or exchange of property used in your trade or business	Form 4797, Sales of Business Property