Submitted By: Emily
Answered: January 25, 2009 12:00 am

Do I need to notify the IRS when my business fails 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.

Tax Glossary

Health savings account

For calendar year 2007, taxpayers covered by an HDHP may contribute up to the lesser of the annual deductible or $2,850 ($5,650 for family coverage).

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