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August 26, 2024 
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In this video we are going to show you how to close your EIN number with the IRS if your business is a single member LLC or a sole proprietorship. Let’s go. Hello from Freedom Tax Accounting, we’re an accounting firm where we have been providing quality tax and accounting services now for over 20 years and in this video we’re going to show you how to close your business EIN number with the IRS if your business is a single member LLC that files taxes as a sole proprietorship or if your business is a sole proprietorship.
In order to close your business properly you have to do several steps. You have to file articles of dissolution with the state where your business is registered and you also have to close your business with the IRS. So you have to close your business at the federal level with the IRS and at the state level in whatever state your business is registered.
So with the state you file articles of dissolution to close the business in the state. Now with the IRS it depends on what type of business entity you have. If your business either an INC or the LLC if it files forms either form 1120, 1120S or 1065 you do not have to do the steps I’m going to show you in this video.
Basically if your business files one of those forms 1120, 1120S or 1065 for taxes in order to close with the IRS there’s a box at the first page of the tax return that you basically check it when you file your final return and you check the box that says final return that way when you send in your final tax return to the IRS the IRS knows this is a final return and that they need to close that EIN number of your business.
But if your business is a single member LLC or a sole proprietorship that files taxes under Schedule C or Schedule E or if you never filed taxes, but you know that the filing requirement is as a sole proprietorship then there’s no box to check on the final return that says final return. So you have to let the IRS know in a different way that your business is closing and that you want the IRS to close your EIN number.
Now the way to do it is that actually you send a letter to the IRS okay and I’m gonna show you exactly what the letter needs to say and where to send it so let’s go. Okay so this is the letter that you have to write to the IRS it’s very simple okay so you basically just have to put the date on top then you have this is the address that you need to send the letter. You need to send the letter to:
Internal Revenue Service
Attention EO Entity Mail Stop 6273
Ogden, Utah 84201.
That’s the address that you’re going to send the letter and here you’re going to put in reference. Pput your business name and your business address. Also, put your business EIN number and you basically write the letter saying to whom it may concern; I am writing this letter to request the cancellation of my EIN number. Put your EIN number and put the date that your business closed in this case it says as of March 2024 my business is no longer in activity. Please make the necessary changes to my account. Thanks for your consideration this request. Then put your name and signature. Send the letter to this address that we showed you on top. That’s it.
Send that letter to the IRS and what’s going to happen in around 60 to 90 days you’re going to receive a letter from the IRS with the IRS saying that in response to your correspondence your account has been closed or your EIN number has been canceled. So, you have to keep this letter on your records because this is your proof that you did the necessary steps and that you closed your EIN number with the IRS. So, there you go that’s how you close your EIN number with the IRS if your business is a single member LLC that is considered as a sole proprietorship for tax purposes.
Thank you for watching this video. I hope you have received valuable information. If yes, then like this video and share it with other business owners so they can take advantage of this information. Remember, here at Freedom Tax Accounting we’re a full-service accounting firm. We can help you with your personal taxes, business taxes, tax planning, and forming new LLCs. We can help you in many, many ways.
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