Closing a Business
If you are closing your Connecticut business, your out-of-state business will no longer be conducting business in Connecticut, or you are no longer subject to a tax for which you are registered, you can log into the Taxpayer Service Center (TSC-BUS) and click Close Business or Tax Types under Business Profile on the left toolbar.
- Sales and Use Taxes Account
- Corporation Business Tax
- Withholding Tax
- Insurance Premium and Health Care Center Taxes
If the business holds a Sales and Use Tax Permit and will no longer be making sales, you must follow these steps to close the account and cancel the Sales and Use Tax Permit:
Note: A third party cannot close a client's account in myconneCT.
- Close the account by logging into myconneCT and open the More…menu, then locate the Taxpayer's Updates group and select Close Accounts and follow the prompts.
- All your sales and use tax returns must be filed through the date of closure.
- Destroy your Sales and Use Tax Permit.
- File a final sales and use tax return (Form OS-114). Complete all parts of the return, including the section of the return that asks for the last date of business and sign the return;
- Write the word "FINAL" prominently across the top of the return (OS-114);
- Fill out the back of the Sales and Use Tax Permit (blue card) with your last date of business, and enclose it with the final return; and
- Mail your final return and permit card to the address on the form.
You may not close the corporation business tax account until you dissolve (if a domestic corporation) or withdraw (if a foreign corporation) with the Connecticut Secretary of the State. You may download the appropriate forms for dissolution or withdrawal on the Secretary of State's website or contact the Office of the Secretary of the State for information and forms at 860-509-6000.
Remember, you are required to file a final Form CT-1120, Connecticut Corporation Business Tax Return. The corporation business tax applies to any year or part of a year when the corporation was in existence.
If an employer goes out of business or permanently stops paying wages, the employer must notify DRS immediately by filing Form CT-941, Connecticut Quarterly Reconciliation of Withholding, for the current quarter. The employer must check the box indicating that the employer no longer has employees and enter the last payroll date on the line provided on Form CT-941 or send written notification to:
Department of Revenue Services
PO Box 2937
Hartford CT 06104-2937
An employer must also file Form CT-W3, Connecticut Annual Reconciliation of Withholding, issue Forms W-2 to all employees showing their wages and withholding, and submit copies of all Forms W-2 to the Department of Revenue Services.
If the business had employees, it must also cancel its registration with the Connecticut Department of Labor.
Closing Insurance Premiums Tax and Health Care Center Taxes (Domestic and Foreign Insurance Companies)
Insurance companies wishing to inactivate their DRS tax registration (go out of business) for the Connecticut Insurance Premiums Tax or Health Care Center Tax must contact the Connecticut Insurance Department at 860-297-3814. Once verified and approved, the Connecticut Insurance Department will forward the information directly to DRS to be used to inactivate the tax registration of the insurance company or health care center. DRS will not accept a request to cancel a tax registration for the Insurance Premiums Tax or Health Care Center Tax directly from the insurance company.