Terminating an EIN

wrote

Take a look at the EIN confirmation notice you received shortly after obtaining your tax ID number. There's a short list of tax returns the IRS is looking for and their due dates. All those returns need to be filed (if you haven't already) and indicate on them that they are final returns, and if necessary, the date final wages paid, date business closed, etc You'll most likely need to do this for the 940, 941, and the corporate (1120 or 1120S) return if you were incorporated (you don't quite say).

-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net

If its a corp, you have to liquidate it through the state.

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-----> real address on hobokeni or hobokenx

Alternately, you could wait for the IRS to send you follow-up notices and indicate the same information about date your business closed on them. At least that would save you the trouble of filing complete returns. It's not clear to me which method (filing returns or responding to form letters) is more cost-effective.

-Mark Bole

"Mark Bole" wrote

It depends on who is filing returns telling them to close the numbers out, or who is responding to the notices about unfiled returns. Clearly my fees to fill out a return with zeros, check the box indicating that no returns fill be filed in the future, and indicating the date last wages paid, etc and so on, is much less than having to write a letter explaining the same thing six to eight months down the road. Of course, if you're doing it all yourself, then either method is just as cheap.

-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net