Changing Your Business or Getting Out of Business
Closing Your Business
Final return (Form
941). If you go out of business, you must file a final
return for the last quarter in which wages are paid. If you continue
to pay wages or other compensation for quarters following termination
of your business, you must file returns for those quarters. See
the Instructions
for Form 941 for details on how to file a final return.
Note: If you are required to file a final
Form 941, you are also required to furnish Form W 2 to your employees
by the due date of the final Form 941. File Form
W-2 and Form
W-3 with the SSA by the last day of the month following
the due date of your final Form 941. See the Instructions for
Form W 2for more information.
Final return (Form
940). If you will not have to file returns in the future,
check the box on the line below question C. Then complete and sign
the return. If you start paying FUTA wages again, file Form 940or
Form
940-EZ.
For partnership tax years beginning after 1997, the partnership's
tax year closes with respect to a partner whose entire interest
in the partnership is terminated, whether by death, sale or exchange,
or liquidation. Previously, the partnership's tax year closed only
with respect to a partner who sold, exchanged, or liquidated his
or her entire interest in the partnership. For more information,
see
Publication 541.
If the corporation ceases to exist, file Form
1120 and check the Final return box. Do not file Form 1120-A.
A corporation must file Form
966 if it adopts a resolution or plan to dissolve the corporation
or liquidate any of its stock. Exempt organizations are not required
to file Form 966. These organizations should see the Instructions
for Form 990 or Instructions
for Form 990-PF.
Where to File
Important References:
Form
W-2
Wage and Tax Statement
Instructions
for Form W 2
Form
W-3
Transmittal of Income and Tax Statements
Publication
15
Circular E, Employer's Tax Guide
Publication
541
Partnerships
Form
940 and Form
940-EZ Employer's Annual Federal Unemployment (FUTA)
Tax Return
Instructions
Form 940
Form
941
Employer s Quarterly Federal Tax Return
Inst.
Form 941
Form
966
Corporate Dissolution or Liquidation
Form
990
Return of Organization Exempt from Income Tax
Instructions
for Form 990
Form
990PF
Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable
Trust Treated as a Private Foundation
Instructions
for Form 990-PF
Form
1120
U.S. Corporation Income Tax Return
Inst.
Form 1120
Weblinks:
www.sba.gov/starting/indexcounseling.html