I got the number for a business I was going to launch but the plans fell thru. I never used the number at all. How do I close it out?? Thanks
2007-05-03 08:34:20 · 5 answers · asked by rafastella 2 in Business & Finance ➔ Taxes ➔ United States
When you were notified of the ID# by the IRS you were told which form to file at year end. File that form and check the box "Final return". Also file a return with your state if you are required to file with your state.
If you do not file a final return the IRS will send you a Failure to File penalty for not filing your return.
If you incorporated you must check with your Secretary of State as to the correct procedure to close a corporation out.
2007-05-03 08:56:12 · answer #1 · answered by dillon Y 3 · 3⤊ 0⤋
You do not actually 'close-out' a tax ID. It remains there but if you do not have income then you may not need to file a return. If the entity was a disregarded entity then you have no issues. If the entity was a corporation or partnership then a return must be filed even if you have no income. When you file be sure to check the box for 'Final Return' and that will indicate to the IRS that you will not be filing in the future. You can determine your entity type by looking at the SS-4 you filed and the letter that came from the IRS after you requested the tax ID. You also need to see about the issues involved with winding up the entity with your State. Some require you to get State Treasury clearance if you have registered for State taxes. If you've never registered for State taxes then you may be able to simply not file the renewal and allow the entity to automatically dissolve.
2007-05-04 10:41:45 · answer #2 · answered by MICon 2 · 0⤊ 0⤋
I don't know if you have to, even after looking on the IRS site. I did find a 'Closing a Business' checklist. The answer should be in there somewhere.
2007-05-03 18:48:26 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
I don't think you have to. It is a unique number and applies only to your venture. If nothing is ever filed using that number you shouldn't have any problem.
I started and folded a company about 3 years ago, but I didn't think to ask this question. Your local social security or IRS office should be able to answer it for you.
2007-05-03 15:41:01 · answer #4 · answered by jim_elkins 5 · 1⤊ 2⤋
I have never seen that question before; it is a good one. You might go to IRS.GOV and pull up the SS4 form and instructions and see if any mention is made of how to cancel a number. I am going to look myself as you have me curious.
2007-05-03 16:32:09 · answer #5 · answered by acmeraven 7 · 0⤊ 0⤋