Closing my single member LLC

[jobie]

I closed my single member LLC on 12/31/2021. However when I processed my 2021 tax return on Turbo tax I overlooked saying "yes" when Turbo Tax asked if I closed my business that year. I did not realize my error until after I had e-filed my federal return.  I filed my CA state tax return by mail, so I went back and answered "yes" to the question about closing my business before I printed my State forms. After mailing my state forms, I went back and changed my answer back to "no" ("no" I had not closed my business) so that it would match with the information I had sent to the IRS. My plan was to file an amended 2021 Federal return to correct this error, but in looking at the Federal Schedule C, there is nowhere that it asks whether I closed my business that year.   I tried to go through the amendment process with Turbo Tax to answer "yes" to that question but it does not ask me that question again in the amendment process. Is it necessary for me to file an amended federal return for this reason? 

[AnnetteB6 · Accepted solution]

No, there is no need to file an amended return to notify the IRS that your Schedule C business has been closed.

When you are working through the Schedule C section within TurboTax, there may be a question about whether you closed your business during the year.  However, that question is used for TurboTax purposes to determine whether to transfer the data to the following year's tax return.  It is not part of the Schedule C that goes to the IRS.  

[jobie]

Thank you!!