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Changing tax ID number

Regulations/Policies
Construction Materials and Engineering
From United States of America
To Estonia
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David W.
Nov 17, 2020

Last year, I was thinking about starting a business with two friends (an LLC) and got a federal tax ID number. But our circumstances changed, and we've decided not to start the business. Do we have to file a tax return for a business that never existed?

1 answer

Fernando J.
Nov 17, 2020

The simple answer is yes. If you have a federal tax ID number and fail to file a tax return with that number on it, the IRS will charge you a nonfiling penalty--in your case, that would be $600 per partner, or $1,800 total. What you should do is download Form 1065 (a partnership tax return) from the IRS website , and fill in all the blanks with zeroes. On the line reading "date business commenced", write in "N/A - never commenced business," and be sure to check the "Final Return" box on page one of the form. That should be enough to put the IRS on notice that you're not planning to use your tax ID number in the future and that "There's nothing to see here.

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