Changing Your Business or Getting Out of Business

Closing Your Business

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-2 for more information.

Form 944
If you go out of business or stop paying wages to your employees , you must file a final return. To tell the IRS that the form for a particular year is your final return, check the box in Part 3 on page 2 of Form 944 and enter the final date you paid wo your employeesages. Also attach a statement to your return showing the name of the person keeping the payroll records and the address where those records will be kept.

See the Instructions for Form 944 for additional information.

Form 940
If you will not have to file returns in the future, check the box on page 1 of Form 940. Then complete and sign the return. If you start paying FUTA wages again, file Form 940.

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. For more information, see Publication 541.

If the corporation ceases to exist, file Form 1120 or Form 1120-A and check the Final return box.

A corporation must file Form 966 if it adopts a resolution or plan to dissolve the corporation or liquidate any of its stock. 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 and Form W-3	Transmittal of Wage and Tax Statements
Form W-3	Transmittal of Income and Tax Statements
Publication 15	Circular E, Employer's Tax Guide
Publication 541	Partnerships
Form 940	Employer's Annual Federal Unemployment (FUTA) Tax Return
Instructions for Form 940	Employer's Annual Federal Unemployment (FUTA) Tax Return
Form 941	Employer's Quarterly Federal Tax Return
Instructions for Form 941	Employer's Quarterly Federal Tax Return
Form 966	Corporate Dissolution or Liquidation
Form 990	Return of Organization Exempt from Income Tax
Instructions for Form 990	Return of Organization Exempt from Income Tax
Form 990PF	Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation
Instructions for Form 990-PF	Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation
Form 1120	U.S. Corporation Income Tax Return
Form 1120-A	U.S. Corporation Short-Form Income Tax Return
Instructions for Form 1120	U.S. Corporation Income Tax Return