What California CDTFA-65 (2022) Is For
California CDTFA-65 is the notice that business owners use to close CDTFA tax and fee accounts. It notifies the State of California that the business ended operations, changed ownership, or no longer needs the accounts.
The California Department of Tax and Fee Administration uses the form to confirm the closeout date and end filing requirements. The form supports seller’s permit closures, including temporary seller’s permit closures, and related CDTFA programs.
The notice supports security deposit release, escrow clearance processing, and successor liability review for the business community. The notice aligns employer registration records with the Employer Identification Number, account numbers, and the final return period.
When You’d Use California CDTFA-65 (2022)
A business files CDTFA-65 after permanent closure, a business sale, or a transfer of inventory and fixtures. A business also files after entity changes, including partnership dissolution, incorporation, or ownership restructuring.
The form also applies when a temporary seller’s permit ends and the business stops operating under that account. Some industries change frequently, including the California cannabis industry and prepaid mobile telephony sellers.
A cannabis seller may close accounts tied to the California Cannabis Excise Tax when operations end. The Business Support Center can provide account closure guidance and information about personal service options.
Key Rules or Details for 2022
A business must file a final return reporting sales through the closeout date, including fixtures, equipment, and remaining inventory. A business must report use tax on items removed from resale inventory for personal use.
CDTFA may audit records for four years, and the form requires the records storage location. Payments may require certified funds, and EFT rules apply when the account requires electronic payment.
A business must return the seller’s permit because the permit remains state property after closure. A business should keep mailing details current for United States Postal Service notices and any online registration tool updates.
Step-by-Step (High Level)
Step 1: A business gathers the account number, closeout date, forwarding address, and details for inventory and equipment disposition.
Step 2: A business completes identification fields, including the Employer Identification Number and any California sales tax certificate number.
Step 3: A business answers closeout questions about retained inventory use, donations, resale sales, and business sale terms.
Step 4: A business signs the certification, attaches the final return and sales documents, and returns the physical permit.
Step 5: A business mails the packet, retains copies for four years, and confirms closure of any temporary seller’s permit.
Common Mistakes and How to Avoid Them
Filers encounter processing delays when submission errors prevent reviewers from completing closeout verification. Clear identification of these mistakes supports accurate records, complete documentation, and timely account closure. Correcting preventable errors improves compliance and supports timely account closure decisions.
- Missing Signature and Date: This mistake occurs when an authorized signer submits CDTFA-65 without a signature and date. The taxpayer must sign and date the form before submission.
- Mismatched Account Identifiers: This mistake occurs when CDTFA-65 lists an Employer Identification Number or account number that does not match CDTFA records. The taxpayer must verify identifiers against CDTFA account records before filing.
- Unfiled Final Return: This mistake occurs when CDTFA-65 is submitted before the final return reports sales through the closeout date. The taxpayer must file the final return through the closeout date before submitting CDTFA-65.
- Missing Supporting Sale Documents: This mistake occurs when a business sale closeout lacks escrow instructions or a bill of sale with allocations. The taxpayer must attach complete sale documents showing inventory, fixtures, and equipment values.
- Noncompliant Final Payment Method: This mistake occurs when the final payment uses a method that conflicts with certified funds or EFT requirements. The taxpayer must submit the final payment using the required method shown on the account.
What Happens After You File
CDTFA reviews CDTFA-65 for completeness and requests missing sales documents, account identifiers, or closeout dates as needed. CDTFA verifies the final return, payment method, and escrow documents tied to the account closeout.
CDTFA updates the account status and mails a written confirmation to the forwarding address on file. A business may receive a security deposit refund after CDTFA confirms that all liabilities are satisfied.
An audit can extend timelines when records are unavailable or reported amounts require verification. A buyer may request a clearance certificate during escrow to address successor liability for a completed sale.
FAQs
Can CDTFA-65 be filed online?
CDTFA allows account closure through its online services portal for many accounts. The filer selects the account, then selects Account Closure. The filer still files the final return and provides the same closeout details.
Does CDTFA-65 replace local permit or license steps?
CDTFA-65 closes CDTFA tax and fee accounts only, and it does not issue city or county permits. A filer handles local license or permit changes through the applicable local agency. A filer also updates related business registrations separately when a closure changes the legal entity or business name.
Does the Internal Revenue Service require separate closing steps?
The Internal Revenue Service handles federal closure actions separately from CDTFA. The filer updates final federal returns, payroll accounts, and the Employer Identification Number status as needed. The Employment Development Department (EDD) also has separate employment account requirements.
Do partnership changes always require CDTFA-65?
Some partnership agreements dissolve the entity when partners change, which triggers account closure and new registration. Other agreements allow continuation, which may require only an account update. CDTFA can confirm the correct action for the entity.
Where does the filer mail CDTFA-65?
The filer mails the signed packet to the Sacramento, CA address printed on CDTFA-65. The filer includes the final return, payment, and supporting sale documents when applicable. United States Postal Service tracking helps confirm delivery for records.
