LTD Tax Services & Business Solutions has moved offices. We’re in the same building, but a new office suite. Our new address is:

2600 S. Loop West
Suite 448
Houston, Texas 77054

Please update your address books accordingly.

COVID-19 Notice

Due to the ongoing COVID-19 pandemic we are offering virtual services per our client’s request this year. We will still be in the office working; so if you need to come to the office please feel free to come by.

We’re Here to Help

Don’t forget that LTD Tax Services & Business Solutions is here to help with flexible hours and days to meet your needs. We offer:

• Refund Advance Loans Available
• Same Day Approval
• $500- $6,000 No Credit Check
• Opening Day January 2, 2021
• Contact the Office for More Details

The deadline to register for your stimulus check (or more properly, your “Economic Impact Payment”) using the Non-Filers tool has extended to November 21, 2020.

If you or a family member typically don’t have to file a tax return and haven’t received an Economic Impact Payment, you should register as quickly as possible using the Non-Filers: Enter Info Here tool on IRS.gov. The tool will not be available after November 21.

This additional time is only for those who haven’t registered or received their Economic Impact Payment and don’t normally file a tax return. For taxpayers who requested an extension of time to file their 2019 tax return, that deadline was October 15.

Most eligible U.S. taxpayers automatically received their Economic Impact Payment, but others who don’t have a file a tax return need to use the Non-Filers tool to register with the IRS to get up to $1,200. Typically, this includes seniors and people who receive little or no income.

Additionally, anyone using the Non-Filers tool can speed up the arrival of their payment by choosing to receive it by direct deposit. Those not choosing this option will get a check.

Beginning two weeks after they register, people can track the status of their payment using the Get My Payment tool, available on IRS.gov.

Closing a business is never an easy decision to make. Nonetheless, it’s sometimes necessary and not all that uncommon. If you find yourself in this situation, there are number of steps you should take to shut down your business in an orderly manner and ensure that the IRS knows that your business should no longer be taxed.

1. File a final tax return. You must file a final return for the year you close your business. The type of return you file – and related forms you need – will depend on the type of business you have:

   • Sole proprietor filing requirements. If you were a sole proprietor, you should file Form 1040 (or Form 1040-SR) Schedule C (Profit or Loss From Business) with your individual tax return for the year that you close your business. You may also need to file Form 4797 (Sales of Business Property) if you sell or exchange business property, Form 8594 (Asset Acquisition Statement) if you sell your business, and/or Form 1040 Schedule SE (Self-Employment Tax) if you have net earnings of $400 or more from your business.

   • Partnership filing requirements. If your business was a partnership, you must file Form 1065 (U.S. Return of Partnership Income) for the year you close your business. When you file, you must report capital gains and losses on Form 1065 Schedule D, check the “final return” box, and check the same box on Schdule K-1 (Partner’s Share of Income, Deductions, Credits, Etc.). You may also need to file Form 4797 (Sales of Business Property) if you sell or exchange business property, or Form 8594 (Asset Acquisition Statement) if you sell your business.

   • Corporation filing requirements. If your business was organized as a corporation, you must file Form 966 (Corporate Dissolution or Liquidation) if you plan to dissolve the corporation or liquidate any of its stock. If your business was a C corporation, you must also file Form 1120 (U.S. Corporate Income Tax Return) for the year you close the business, check the “final return” box on your return, and report capital gains and losses on Form 1120 Schedule D. If your business was an S corporation, you must file Form 1020-S (U.S. Income Tax Return for an S Corporation) for the year you close the busines, check the “final return” box on your return, report capital gains and losses on Form 1020-S Schedule D, and check the “final return” box on Schedule K-1 (Shareholder’s Share of Income, Deductions, Credits, Etc.). Both C corporations and S corporations may also need to file Form 4797 (Sales of Business Property) if you sold or exchanged business property, or Form 8594 (Asset Acquisition Statement) if you sold your business.

2. Take Care of Your Employees If you have one or more employees, you must pay them any final wages and compensation owed. You must also make final federal tax deposits and report employment taxes. If you don’t withhold or deposit employee income, Social Security and Medicare taxes, you may face penalties.

   You must also provide a Form W-2 (Wage and Tax Statement), to each of your employees for the calendar year in which you pay them their final wages. Generally, you furnish copies B, C and 2 to the employees. You file Form W-3, Transmittal of Income and Tax Statements to transmit Copy A to the Social Security Administration.

   Finally, if your employees received tips, don’t forget to file final tip income and allocated tips on Form 8027 (Employer’s Annual Information Return of Tip Income and Allocated Tips).

3. Pay the tax you owe. If you or your business owe taxes during your business’s final year, you have pay those taxes just like every other year.

4. Report payments to contract workers. If you’ve paid any contractors at least $600 for services (including parts and materials) during the calendar year in which you close your business, you must report those payments on Form 1099-NEC (Nonemployee Compensation).

5. Cancel your EIN and close your IRS business account. The employer identification number – or EIN – assigned to your business is the permanent federal taxpayer identification number for that business. To cancel your EIN and close your IRS business account, you need to send us a letter that includes the complete legal name of the business, the business EIN, teh business address, and teh reason you wish to close the account.

6. Keep your records. How long you need to keep your business records depends on the type of record. Property reocrds should generally be retained for as long as you can ammend your tax return for the year in which you disposed of the property. Employment tax records hould be kept for at least four year.

Properly closing a business can be just as much work as organizing a new one. If you need help or advice when closing your business, please contact our office. We would be happy to point you in the right direction.