Do I need to notify the IRS when my business fails or just not file a Schedule C?

I had a business and filed taxes as a sole proprietor. Last year I ended the business. Do I need to notify the IRS or just not file a Schedule C?

You can get away with not filing a Schedule C. But sometimes the IRS gets curious when a business just disappears. The last thing you want to do is make the IRS curious. So I would suggest that you attach a statement that says you shut down your business. In the future, you might want to put "final return" on your Schedule C and attach a statement. This way, you've got everything covered.