If I sell or transfer my business, should I file Form 941?
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Last modified 3/23/2021 2:40:57 AM EST |
Added by ExpressEfile Team
Yes, you should file Form 941 even if you sell or transfer your business. While selling or transferring your business, you and the buyer must file IRS Form 941 in which the sale or transfer occurred.
The seller should report the taxes and wages paid prior to the transaction and the new owner should only provide their share details. Even if you change your business from one type to the other, it’s considered as a transfer and the same way of filing should be carried out as mentioned above. In case, if you merge your business with another organization, the firm which is responsible to continue the business must file the tax returns for the quarter in which the merge occurred.
A final 941 return must be filed when you stop paying wages or when the business is closed.