Question

Closing Etsy Shop

Forum|Forum|1 year ago
February 25, 2025
1 reply
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I've been running an Etsy shop for the past few years but need to close it and move on with other things. Do I need to let the IRS know that I'm closing this shop or do I just quit including it in my taxes once all my taxes are paid for it?

T

ThomasM125

You don't need to inform the IRS you are closing the business if you are not incorporated or an LLC, unless you have a federal lD number for the company. In that case, you need to deactivate it. You can do that by sending a letter that includes the business's name, address, EIN assignment notice (if available) and a reason for deactivating to: Internal Revenue Service; MS 6055; Kansas City, MO 64108. From an IRS article:

If you file a partnership or corporate return for the company, you need to file the final return and check the final return box on the form.

You should indicate on your final tax return in TurboTax that you are closing the business as there may be things that need to be reported on the final return.

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