When you close or sell your business, be sure to close your business tax account with the Vermont Department of Taxes. Otherwise, the department may think you are still in business but not filing returns. The department may then bill you for unpaid taxes.
Pay Taxes Owed and File Returns Due
Before closing your account, be sure to pay any remaining taxes and file all returns due to the Department. If you have employees, it is important to file a final Form WHT-434, Annual Withholding Reconciliation, with forms W-2 and/or 1099 as required, or file using your myVTax account. You must file within 30 days of closing your withholding account.
Selling your business or assets?
If you are selling your business, or selling the assets of a closed business, the buyer may ask for a Notice of Escrow from the Department of Taxes. This is also called a tax certificate or clearance. This notice provides information to the buyer about what taxes are due for which the buyer might become responsible.
Please pay all taxes due up to the closing date.
For more information, please see Vermont law at 32 V.S.A. § 3260 or contact the Department.
How to Close Your Business Tax Account
The easiest way to close your business tax account online is to log in to your myVTax account at and select Close Account. If you have more than one type of business tax account, you must close each individually.
If you do not have a myVTax account, you may file on a paper form using Form B-2, Notice of Change.
We also recommend notifying the Vermont Secretary of State that you are closing your business.