Need to shut down your S corp’s EIN? You’ll need a formal letter. This letter tells the IRS you’re closing the account. It’s needed when your S corp is no longer active. Think of selling the business or complete closure.
Writing this letter can feel daunting. Where do you even start? Don’t worry, we’ve got you covered.
This article provides sample letters. These samples make writing your own letter easy. Use our templates and examples. Get your EIN closure letter done right.
Sample Letter To Close An Ein Account For S Corp
Sample Letter To Close An EIN Account For S Corp
[Your Company Letterhead]
[Date]
Internal Revenue Service
Cincinnati, OH 45999
Subject: Request to Close EIN Account – [Your S Corp Name], EIN: [Your EIN]
Dear IRS,
This letter is to formally request the closure of the Employer Identification Number (EIN) account for [Your S Corp Name]. Our company is an S corporation.
We no longer require this EIN because [State the reason for closure. Examples: the business has been dissolved, the business has been sold, the business is no longer operating].
Please find enclosed the following documents:
* A copy of our final tax return (Form 1120-S) for the tax year ending [Date].
* [If applicable, include any other relevant documents, such as a copy of the articles of dissolution or sale agreement.]
We kindly request confirmation of the EIN closure in writing. Please send this confirmation to the address listed above.
Thank you for your time and assistance in this matter.
Sincerely,
[Your Name]
[Your Title]
[Your Phone Number]
[Your Email Address]
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How to Write Letter To Close An EIN Account For S Corp
Subject Line: Clarity is Key
The subject line is your initial communiqué. It should be succinct and unambiguous, immediately signaling the letter’s intent.
- Use: “EIN Account Closure Request – [Your S Corp Name] – EIN: [Your EIN]”
- Avoid ambiguity. The IRS processes countless documents; ensure yours is easily identifiable.
Salutation: Addressing the Correct Authority
Beginning with the correct salutation demonstrates due diligence and respect for protocol. This is not the place for improvisation.
- Use: “To Whom It May Concern,” is generally acceptable.
- If you have a specific contact person, which is uncommon, use their name and title.
Introduction: Stating Your Purpose Concisely
The introduction should immediately articulate the purpose of your letter. Brevity is paramount; eschew verbosity.
- State the S corporation’s name, EIN, and explicitly state that you are requesting closure of the EIN account.
- Example: “This letter serves as formal notification to request the closure of the Employer Identification Number (EIN) account for [Your S Corp Name], EIN: [Your EIN].”
Body Paragraph 1: Reason for Closure
Specify the reason for closing the EIN account. Transparency is crucial and can forestall potential inquiries.
- Common reasons include: dissolution of the S corporation, merger with another entity, or conversion to a different business structure.
- Clearly state the reason: “The reason for this closure request is due to the dissolution of [Your S Corp Name], effective [Date].”
Body Paragraph 2: Affidavit of Final Compliance
Assure the IRS that all obligations have been met. This proactive step can prevent future complications.
- State that all tax obligations have been fulfilled, and all final returns have been filed.
- Example: “All federal tax obligations have been satisfied, and all requisite final tax returns have been filed for [Your S Corp Name].”
Closing: Gratitude and Contact Information
End the letter with a note of appreciation and provide contact information for any potential follow-up. Professionalism endures until the very end.
- Express gratitude: “Thank you for your attention to this matter.”
- Provide contact information: Include a phone number and email address for a designated contact person.
Signature and Enclosures: The Final Touches
The signature lends authenticity, and any supporting documents provide additional validation. These elements are indispensable.
- Use a professional closing: “Sincerely,” or “Respectfully,”
- Include your typed name and title beneath your signature.
- If applicable, enumerate any enclosed documents, such as articles of dissolution or merger agreements.
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Frequently Asked Questions: Closing an EIN Account for an S Corp
Closing an Employer Identification Number (EIN) account for an S Corporation requires adherence to specific IRS guidelines. This FAQ addresses common inquiries regarding the process.
When is it necessary to close an EIN for an S Corp?
An EIN should be closed when the S Corp ceases operations, merges with another entity, or undergoes a change in structure that no longer requires it.
What information is needed in the EIN closure letter?
The letter must include the S Corp’s legal name, EIN, address, reason for closure, date the business ceased operations, and the name and title of the responsible party.
Where should the EIN closure letter be sent?
The letter should be mailed to the Internal Revenue Service (IRS) address corresponding to the state where the S Corp’s principal place of business is located.
Is there a specific form to use for closing an EIN?
No, the IRS does not provide a specific form for closing an EIN. A written letter containing the required information is sufficient.
What happens after the IRS receives the EIN closure letter?
The IRS will process the request and update its records to reflect the EIN’s closure. Confirmation may or may not be provided by the IRS.