How to Write a Business Closure Letter to the Tax Office
Once you have made final payments to employees, vendors and creditors and sold or otherwise disposed of leftover inventory, notifying the tax office is one of the final steps in the business closure process. Although your state tax return has space to indicate that you closed your business, you must also notify the proper agency. This process varies from state to state, but it typically involves contacting the state department of revenue with information about your business and the closure. There is no set format for a business closure letter, but there are items you should include to ensure the taxing entity has all the information it needs.
Place the date at the top-left side of the page. Address the letter to your state's tax office, such as the Department of Revenue or comptroller.
State your name, your title, the company’s name if you are using a DBA, the address, the business’ Taxpayer Identification Number and the Federal Employer Identification number in the first paragraph.
Provide the date of business closure in the second paragraph. Include a brief explanation of the reason the business closed, such as financial hardship, opening a new business or owner retirement.
Request the termination of any licenses or permits in the third paragraph.
Include a phone number in the closing paragraph where the tax office can reach you if it needs more information. Sign your name at the bottom of the letter.
Make a copy of the letter for your records. Keep it with your other business financial documents.
Send the letter by certified mail with a return receipt requested. This provides you with documentation of when the tax office receives your letter.