Know What's Happening in Business

Protect Clients From Post-Closure Payroll Tax Notices

The guide explains how advisors should help clients properly close federal, state, and local payroll tax accounts after payroll ends, emphasizing that stopping payroll does not automatically terminate tax obligations. It outlines required final filings—Forms 941/944, 940, W‑2/W‑3—and the process to cancel an EIN, then details the fragmented state and municipal procedures that often require separate unemployment and withholding closures. Delays or omissions can trigger automated notices, penalties, and interest years after a business shuts down. A checklist of best practices and common pitfalls equips advisors to protect clients from unexpected compliance costs.