If the business was an LLC, you may get a K-1.  

You generally can deduct an investment loss. You will enter this as an investment SALE. 

You can deduct the investment in the tax year it becomes completely worthless. This normally happens when the corporation files for bankruptcy, stops doing business, and has no assets. Financial difficulties won't make it worthless unless there is no hope that the company will pull through.

• Enter a worthless investment with a sales price of zero and the word "worthless" in its description. Enter the correct cost or basis, date acquired, and December 31 as the date sold.
• You can deduct a net loss of up to $3,000 ($1,500 if married filing separately). Any capital loss you couldn't deduct this year can be carried forward and deducted on future tax returns as a capital loss carryover.
• To enter, use these instructions:Where do I enter the sale of a second home, an inherited home, or land on my 2019 taxes?​​​​​​​ 

Related Information:

• How do I add or edit a 1099-B?
• Do I have to report personal items that I sold?