By Salene Mazur Kraemer
Partner, Bernstein-Burkley, P.C.
Suzanne Jett Trowbridge
Of Counsel, Bernstein-Burkley, P.C.
Right now, business owners are struggling with whether they should continue in business or shutter their doors, which we know can be gut-wrenching.
Based on the number of businesses closing due to the pandemic, the IRS has added a closing a business page to its IRS.gov website to help steer small business owners toward what they need to do in order to terminate a business.
The web page provides a variety of useful tax information, including forms, reporting revenue and expenses, and more. It also includes a step-by-step look at the following:
- Final tax returns and forms, paying final taxes.
- Paying final wages and compensation to employees, including federal tax deposits and employment taxes.
- The cancellation of EIN and IRS accounts.
- How long to keep your business records.
You can visit the web page here.
The IRS guidance does not address requirements that individual states might have for the formal termination and winding up of a business. In West Virginia, for instance, statutes set forth certain procedures relating to Workers’ Compensation, final wage payments to employees, notices to creditors, and releases by the state tax department among other actions that must be taken.
Bernstein-Burkley, P.C., is experienced and passionate about helping distressed businesses, and can guide them through all possible exit strategies, including but not limited to a liquidation sale of assets, a strategic going concern sale, an assignment for the benefit of creditors, or a Chapter 7 or 11 bankruptcy filing.
If you have any questions regarding closing your business and exploring options, reach out to Salene Mazur Kraemer at firstname.lastname@example.org or Suzanne Jett Trowbridge at email@example.com at Bernstein-Burkley, P.C., or call (412) 456-8100.