In this chapter
Update a continuing business
The business continues, but its details changed
Address, business location or responsible party: notify the IRS with Form 8822-B. A responsible-party change must be reported within 60 days. Do not assume that this specific deadline applies to every kind of business update.
Business name: the procedure depends on the entity type and whether the current return has been filed. Follow the instructions for marking the change on the return or sending a signed notice. This is separate from the Form 8822-B process.
Whether a new EIN is needed: a simple name, address or responsible-party change usually does not require one. Ask whether the same entity continues or a new one is being formed. Incorporating a sole proprietorship or creating a new corporation in a merger calls for a separate check.
An LLC’s corporate or S corporation election alone generally does not require a new EIN. Nor does every ownership change mean a new number; use the IRS entity-specific checklist.
[22][23][24]Close the business in the right order
The business is closing: finish the remaining duties
Closing a website, stopping sales or leaving a bank account unused does not automatically end tax duties. Reconcile the final year’s income, expenses, asset disposals and distributions, then complete the final reporting for the entity’s classification.
If there are employees, handle final wages, payroll deposits and returns; review contractor reporting too. A foreign-owned US disregarded entity should include dissolution or liquidation transactions in its Form 5472 review.
State dissolution, state tax accounts and annual reports need separate attention. The IRS business tax account cannot be closed until required returns are filed and taxes paid. Keep the required records after closure.
[26][14][21]- Complete the final year’s transactions and records and identify final returns and owner or related-party issues.
- Handle employees, contractors, payroll taxes and other required returns and payments separately.
- Check state dissolution, tax accounts and annual reports; do not simply stop renewals or close the website.
- Retain tax records and follow the applicable IRS account and EIN-deactivation procedure.
The EIN is permanent; deactivation is a separate procedure
＋Can I cancel an EIN?The identifier is permanent; account deactivation and dissolution are separate.
An EIN is the business’s permanent federal identifier. It cannot be erased or cancelled, and it cannot be transferred to the next company. You can request deactivation under the IRS procedure, but that does not dissolve the state-law entity.
For an ordinary business, the deactivation letter should include the EIN, legal name, address and reason. Enclose a copy of the EIN assignment notice if available. First resolve any required missing returns, unpaid tax or outstanding filing notices. Tax-exempt organizations have additional rules.
Before sending the letter, check the current mailing address on the IRS EIN-deactivation page rather than relying on an old saved address or a general closure article.
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