Tax reminders for business closure

If you’re closing a business, there are important bases you may have to cover. Here’s a rundown: File a final tax return and related forms, depending on the type of business. Issue final paychecks to employees and file employment tax reports for the quarter, plus annual reports. Provide Forms W-2 to employees, and Forms 1099-NEC (Nonemployee Compensation) to contract workers who were paid at least $600. Notify the IRS in writing of the closure and request the cancellation of your Employer ID number and business accounts. Maintain business records for at least four years, possibly more for issues involving property or unsettled concerns. Contact us with questions about this important process.