Closing a business
A seller’s permit holder must inform the CDTFA of any changes to the permit, including selling the business, changing ownership of the business, or closing the business. Failing to notify the CDTFA of these changes could result in the taxpayer being held liable for taxes, interest, and penalties incurred after the business is no longer owned or operated by the taxpayer.
To close out a seller's permit, fill out and mail a Notice of Closeout for Seller’s permit to the CDTFA. The taxpayer must also file the final sales and use tax return to report final sales. Sales and use tax records must be kept for four years.
For a full list of circumstances that require notifying the CDTFA, see CDTFA Bulletin No. 388 (December 1, 2017) at: www.cdtfa.ca.gov/formspubs/pub388.pdf