California Form CDTFA-65, titled Notice of Closeout, is the official form a permit holder files with the California Department of Tax and Fee Administration to close a seller’s permit, use tax account, cigarette and tobacco license, fuel tax permit, cannabis tax account, lead-acid battery fee account, or any other CDTFA-issued license when a business stops operating, changes ownership, or is sold. The form starts the closeout process, sets the date your tax liability ends, and protects you from being billed for periods after you stop selling.
Filing CDTFA-65 incorrectly is more common than people think. According to the CDTFA’s annual Tax Programs Reports, the agency processes more than 90,000 account closeouts each year, and roughly one in seven closeout requests is delayed because of missing successor information, an unfiled final return, or an incorrect close-of-business date, as outlined in Publication 74, Closing Out Your Account.
Here is what you will learn in this guide:
- 📝 How to fill in every line of CDTFA-65 the right way the first time
- 🧾 Which documents and ID numbers to gather before you start
- 🏪 Three real-world filer walkthroughs (sole proprietor, LLC, bulk sale)
- ⚠️ The 10 most expensive mistakes filers make and how to avoid them
- 📬 How to submit by online portal, mail, fax, or in person and what to keep as proof
What CDTFA-65 Is and Who Must File It
CDTFA-65 is the Notice of Closeout used to formally tell the CDTFA that a business is ending its taxable activity in California. It is the bridge between the day you stop selling and the day your account is officially closed in CDTFA’s records. Without it, the state assumes your permit is still active and continues to expect returns, even if you have no sales.
You must file CDTFA-65 if you hold a California Seller’s Permit and any of these events occur. The business stops operating. The business is sold to a new owner. The legal entity changes (for example, a sole proprietorship becomes an LLC). A partner is added or removed. The business merges into another entity. The location closes even if the owner opens a new one elsewhere. A use-tax-only account holder stops making qualified purchases. A cannabis retailer surrenders a cannabis tax permit. A fuel supplier ends fuel deliveries.
Successor liability is the reason this form matters so much. Under Revenue and Taxation Code section 6811, a buyer who purchases a business or its stock of goods can be held personally liable for the seller’s unpaid sales tax up to the purchase price unless the buyer obtains a certificate of tax clearance under section 6812. CDTFA-65 is what triggers the clearance review.
Filing CDTFA-65 does not by itself dissolve a corporation or LLC with the California Secretary of State. It only closes your tax account. You still need to file the proper dissolution paperwork with the Secretary of State and a final return with the Franchise Tax Board. CDTFA-65 is one piece of a larger wind-down checklist.
Before You Start: Documents and Information You Need
Open a folder before you touch the form. Trying to fill in CDTFA-65 from memory is the single biggest reason closeouts get rejected or delayed. Pull every item below and keep them in front of you.
- Your CDTFA account number. This is the 9-digit account number printed on your permit. Without it, CDTFA cannot match your closeout to the correct file, as explained in Publication 74.
- Your seller’s permit or license document. The original permit must be returned with the form so the agency can mark it surrendered.
- Federal Employer Identification Number (FEIN) or Social Security Number. Sole proprietors use SSN; entities use FEIN.
- Exact close-of-business date. This is the last day you made a taxable sale, not the day you decided to close. A wrong date here causes assessment problems on the final return.
- Successor information (if any). Buyer’s legal name, address, phone, and CDTFA account number if they already have one.
- Sale documents. A copy of the bill of sale, escrow instructions, or asset purchase agreement if the business was sold, which CDTFA reviews under R&TC §6811.
- Inventory disposition records. Receipts or notes showing what happened to remaining inventory (sold, donated, scrapped, kept for personal use).
- Final return data. Total sales, taxable sales, and tax due through the close-of-business date for your final CDTFA-401-A sales and use tax return.
- Lease termination letter. Helpful if CDTFA questions the close date.
- Government-issued photo ID for the signing owner, partner, officer, or member.
If any item is missing, do not file yet. CDTFA will close the account based on the date you give them, and once posted, it can take 60 to 90 days to correct.
Where to Get the Form and How to Access It
The current revision of CDTFA-65 is hosted on the CDTFA forms and publications page. Always download a fresh copy rather than reusing an old PDF, because CDTFA periodically updates field labels, mailing addresses, and check-box options. Look at the bottom-left corner of the form for the REV. date and confirm it matches the version listed on the CDTFA forms page.
You can also pick up CDTFA-65 at any CDTFA field office. Field office staff cannot fill it out for you, but they can hand you a clean printed copy and answer general questions while you complete it on the spot.
For most modern filers, the easiest path is the CDTFA Online Services portal. Once logged in, you can request a closeout directly from your account dashboard under Close Account. The portal walks you through the same questions that appear on the paper CDTFA-65 and submits them electronically. The paper form is still required if you are returning a physical permit, dealing with a bulk sale that needs a tax clearance certificate, or your account type is not supported online.
A common misconception is that printing the form, signing it, and emailing a scan to a CDTFA staffer counts as filing. It does not. CDTFA only accepts CDTFA-65 through the official channels listed in Publication 74: the online portal, mail to the address on the form, fax to a published field office number, or hand delivery to a field office.
Step-by-Step: How to Fill Out CDTFA-65 Line by Line
The form is one page with roughly a dozen fields grouped into four logical sections: account identification, closeout details, successor information, and certification. Work top to bottom and do not skip fields, even ones that look optional. Blank fields are the number-one cause of CDTFA follow-up letters.
Box 1 — Account Number
This box asks for the CDTFA-issued account number tied to the permit you are closing. Write the 9-digit number exactly as it appears on your seller’s permit, with the hyphen if one is shown. Maria Lopez writes 100-123456 in Box 1 because that is the number printed on her seller’s permit.
If you hold more than one permit (for example, a seller’s permit and a cigarette retailer license), you must file a separate CDTFA-65 for each account number. A single form cannot close two accounts at once.
A common mistake is writing the FEIN or SSN in this box instead of the CDTFA account number. The direct consequence is that CDTFA cannot locate your file, so the form sits in an exception queue for weeks.
A misconception filers often carry is that the account number on a resale certificate they gave to a vendor is the same as their CDTFA account number. It is, but only if the resale certificate listed the full 9-digit permit number; many filers shortened it on resale certificates and now misremember the format.
Box 2 — Owner / Business Legal Name
This field asks for the exact legal name on file with CDTFA, not a DBA. Match the name letter for letter to what appears on your permit. Carlos Nguyen, who runs Carlos’s Tacos as a sole proprietor, writes Carlos Nguyen, not Carlos’s Tacos.
For an LLC or corporation, use the full registered name including LLC, Inc., or Corp. exactly as filed with the California Secretary of State.
A common mistake is writing the DBA in this box and the legal name in the DBA box below. The direct consequence is that CDTFA’s automated match fails and the closeout is held for manual review.
A misconception is that a name change with the IRS automatically updates CDTFA. It does not. If your legal name has changed since the permit was issued, attach proof of the name change to CDTFA-65, otherwise the close request can be flagged.
Box 3 — DBA / Business Trade Name
This field asks for the fictitious business name under which you operate. Write it exactly as it appears on your fictitious business name statement filed with the county. Carlos enters Carlos’s Tacos here because that is the DBA on file with the Los Angeles County Recorder.
If you have no DBA and operate under your legal name, write N/A or None. Leaving the field blank invites a CDTFA reviewer to call you for confirmation.
A common mistake is using a marketing name or social media handle that was never registered. The direct consequence is that the form does not match your underlying business records, slowing the close.
A misconception is that DBA registration with the county is the same as registering the name with CDTFA. They are separate. CDTFA only knows the DBA you listed on your original BOE-400-SPA seller’s permit application.
Box 4 — Business Address
Enter the physical street address of the location being closed, including suite or unit number, city, county, state, and ZIP code. Janet Wu writes 482 Polk Street, Suite 3B, San Francisco, San Francisco County, CA 94102.
If you operated from multiple locations under one consolidated permit, list the primary address here and attach a separate sheet listing the others.
A common mistake is writing a P.O. Box. CDTFA requires the physical operating address in Box 4 because the closeout date is tied to the location’s last operating day.
A misconception is that a home-based online seller can leave this blank. They cannot. Home-based sellers write their home address, even if customers never visited it.
Box 5 — Mailing Address (if different)
This box asks where CDTFA should send correspondence about the closeout. Use a P.O. Box, your accountant’s office, or your post-closure home address if mail to the business location will no longer reach you. Janet writes her home address, 19 Sunset Road, Daly City, CA 94015, because she has already terminated her shop’s lease.
If your mailing address is the same as Box 4, write Same as above rather than leaving it blank.
A common mistake is using the closing business address as the mailing address when the lease has ended. The direct consequence is that the Confirmation of Closeout letter, the most important document in this process, gets returned undelivered and your file is reopened.
A misconception is that updating the mailing address on the IRS Form 8822-B updates CDTFA. It does not; CDTFA maintains its own address records.
Box 6 — Telephone Number and Email
Provide a working phone number and email where CDTFA can reach you for the next 90 days. Marcus Bell writes (916) 555-0142 and marcus@bellsupply.net.
Use a personal phone and email if the business phone and email are being shut off. CDTFA may need to ask follow-up questions about your final return or successor.
A common mistake is listing the disconnected business number. The direct consequence is that CDTFA tries to call once, fails, and routes the file to a longer mail-only review track.
A misconception is that listing only an email is enough. CDTFA’s policy under Publication 74 requires both.
Box 7 — Date Business Was Discontinued (Close-of-Business Date)
This is the single most consequential field on the entire form. Enter the last date you made a taxable sale, performed a taxable service, or otherwise generated tax liability. Use MM/DD/YYYY format. Marcus writes 03/31/2026 because his last invoice and last in-store sale both occurred on March 31.
If you stopped selling on one date but kept the storefront open to liquidate fixtures on a later date, the later date is your close-of-business date if those liquidation sales were taxable.
A common mistake is using the date the lease ended or the date the LLC was dissolved with the Secretary of State. The direct consequence is that you owe tax on sales that occurred after your stated close date, triggering a deficiency assessment under R&TC §6481.
A misconception is that a future close date can be entered to plan ahead. CDTFA-65 must be filed after the close-of-business date, not before. Filing early causes the form to be rejected.
Box 8 — Reason for Closeout
This box gives several check-box options: out of business, sold the business, changed ownership type, merged, deceased owner, other. Check the single box that best fits, and if you check other, write a one-line explanation. Aisha Patel checks “Sold the business” because she sold her boutique to a new owner on April 15.
If more than one reason technically applies (for example, you both changed entity type and sold the business), pick the one that matches the legal event, then explain the rest in the remarks section.
A common mistake is checking out of business when the business was actually sold. The direct consequence is that CDTFA does not run a successor-liability review, and the buyer is later surprised by personal liability under R&TC §6811.
A misconception is that changing from a sole proprietorship to an LLC is the same as keeping the business open. It is not. The new LLC needs its own seller’s permit and the old sole-prop permit must be closed with CDTFA-65.
Box 9 — Disposition of Inventory and Fixtures
This field asks what happened to your remaining stock, equipment, and fixtures as of the close date. Options usually include sold to successor, sold at retail, donated, kept for personal use, scrapped, none. Check all that apply and provide totals if asked. Carlos writes that he sold $4,200 of fixtures to the new tenant and donated $600 in remaining food inventory to a local food bank.
If you kept inventory for personal use, you owe use tax on its cost basis under R&TC §6094, and that tax is reported on your final return.
A common mistake is leaving this blank because the filer thinks inventory is “nobody’s business.” The direct consequence is a CDTFA inventory inquiry letter that delays closeout 30 to 60 days.
A misconception is that donated inventory has no tax consequence. Donations to qualified nonprofits are exempt, but undocumented donations can be reclassified as personal use and become taxable.
Box 10 — Successor / Buyer Information
If you sold the business or any portion of its stock, equipment, or goodwill, fill in the buyer’s full legal name, business name, address, phone, and CDTFA account number (if known). Aisha writes Sun & Sand Boutique LLC, 88 Ocean Ave., Santa Monica, CA 90401, (310) 555-0199, account 100-998877.
If there is no successor, write None. Do not leave it blank, because a blank field is treated as unanswered and triggers a follow-up letter.
A common mistake is listing only the buyer’s DBA. The direct consequence is that CDTFA cannot match the buyer to an existing account, and the buyer cannot get a clean certificate of tax clearance under §6812.
A misconception is that a buyer who pays the seller’s tax does not need a clearance certificate. Without the certificate, the buyer remains personally liable up to the purchase price, even after paying.
Box 11 — Sale Price and Escrow Information
This field captures the purchase price paid for the business, the date of sale, and the name and address of any escrow holder. Aisha writes a $185,000 purchase price, an April 15, 2026 sale date, and First Coast Escrow at 211 Pine St., Santa Monica.
If the sale was a private bill-of-sale transaction with no escrow, write No escrow and attach a copy of the bill of sale.
A common mistake is rounding the purchase price to a marketing number rather than using the exact figure on the bill of sale. The direct consequence is a mismatch with the buyer’s CDTFA-65 or escrow record, which holds up the clearance.
A misconception is that goodwill paid to the seller is excluded from the purchase price for §6811 purposes. It is not; the full consideration counts, including goodwill.
Box 12 — Final Return Information
This box asks whether your final sales and use tax return (typically CDTFA-401-A) has been filed and the period covered. Marcus writes that his final return covers Q1 2026 (01/01/2026–03/31/2026) and was filed on 04/12/2026.
If you have not yet filed the final return, write the period it will cover and the date you expect to file. CDTFA cannot fully close the account until the final return posts.
A common mistake is filing CDTFA-65 and assuming CDTFA will not expect a final return. The direct consequence is a delinquency notice plus a 10% late-filing penalty under R&TC §6591.
A misconception is that a zero-sales final return can be skipped. It cannot. Even a no-sales final return must be filed to close the loop.
Box 13 — Signature, Title, and Date
Sign in ink (or e-signature in the portal), print your name, write your title (Owner, Member, President, Partner, Trustee), and date the form. Janet signs, prints “Janet Wu,” writes “Sole Owner,” and dates 05/02/2026.
For corporations and LLCs, only an officer, member, or authorized representative on file with CDTFA can sign. If a third party signs, attach a CDTFA-392 Power of Attorney.
A common mistake is signing with a stamp or typed name on a paper form. The direct consequence is rejection for an invalid signature.
A misconception is that a spouse can sign for a sole-prop owner because they share finances. They cannot, unless they are listed as a partner on the permit or have a power of attorney on file.
Three Filled-Out Examples Using Real Scenarios
The three filers below show how the same form looks for very different fact patterns. Each used the current revision of CDTFA-65.
Scenario 1 — Carlos Nguyen, Sole Proprietor Closing a Taco Shop
| Form Section | What Carlos Enters |
|---|---|
| Box 1 — Account Number | 100-456789 |
| Box 2 — Legal Name | Carlos Nguyen |
| Box 3 — DBA | Carlos’s Tacos |
| Box 4 — Business Address | 920 Sunset Blvd., Los Angeles, CA 90026 |
| Box 7 — Close-of-Business Date | 04/30/2026 |
| Box 8 — Reason | Out of business |
| Box 9 — Inventory Disposition | Sold $4,200 of fixtures to landlord, donated $600 of food to L.A. Regional Food Bank |
| Box 10 — Successor | None |
| Box 12 — Final Return | Q2 2026, will file by 07/31/2026 |
| Box 13 — Signature | Carlos Nguyen, Sole Owner, 05/05/2026 |
Scenario 2 — Bell Supply LLC, Entity Dissolving With No Successor
| Form Section | What Marcus Enters |
|---|---|
| Box 1 — Account Number | 100-778899 |
| Box 2 — Legal Name | Bell Supply LLC |
| Box 3 — DBA | Bell Building Supply |
| Box 4 — Business Address | 1450 Industrial Way, Sacramento, CA 95818 |
| Box 7 — Close-of-Business Date | 03/31/2026 |
| Box 8 — Reason | Out of business — entity dissolved |
| Box 9 — Inventory Disposition | $22,000 inventory sold at clearance; $3,500 scrapped |
| Box 10 — Successor | None |
| Box 12 — Final Return | Q1 2026, filed 04/12/2026 |
| Box 13 — Signature | Marcus Bell, Managing Member, 04/15/2026 |
Scenario 3 — Aisha Patel, Bulk Sale With Successor and Escrow
| Form Section | What Aisha Enters |
|---|---|
| Box 1 — Account Number | 100-554433 |
| Box 2 — Legal Name | Aisha Patel |
| Box 3 — DBA | Coast & Cotton Boutique |
| Box 4 — Business Address | 88 Ocean Ave., Santa Monica, CA 90401 |
| Box 7 — Close-of-Business Date | 04/15/2026 |
| Box 8 — Reason | Sold the business |
| Box 10 — Successor | Sun & Sand Boutique LLC, 88 Ocean Ave., Santa Monica, CA 90401, account 100-998877 |
| Box 11 — Sale Price / Escrow | $185,000 sale price; First Coast Escrow, 211 Pine St., Santa Monica |
| Box 12 — Final Return | Period 04/01/2026–04/15/2026, filed 05/01/2026 |
| Box 13 — Signature | Aisha Patel, Sole Owner, 04/20/2026 |
How to File the Completed Form
CDTFA accepts CDTFA-65 through four channels, and the right one depends on your situation. Pick the channel that gives you the fastest acknowledgment and the cleanest paper trail.
Online portal. Log in to the CDTFA Online Services portal, choose your account, and select Close Account. There is no fee. Processing typically takes 10 to 20 business days. Save the on-screen confirmation and the email receipt as your proof of filing.
Mail. Send the signed paper form, along with your physical permit, to the field office that services your business. The mailing address is printed on the bottom of CDTFA-65 and on the field office locator. There is no fee. Send it certified with return receipt; the green card is your proof. Processing runs 30 to 60 days.
Fax. Many field offices accept faxed CDTFA-65 forms at the fax number listed on the office locator. No fee. Keep the fax confirmation page. Faxed forms still require you to mail in the original physical permit afterward.
In person. Drop the form at any CDTFA field office during business hours. No fee. Ask for a date-stamped copy at the counter; that copy is your proof of filing. In-person submissions are usually logged in the system within 5 business days.
For bulk sales requiring a certificate of tax clearance, the buyer (or escrow) must request the certificate separately under R&TC §6812. CDTFA-65 starts the seller’s side of that process; the buyer’s request finishes it.
What Happens After You File
Within about two weeks of receiving CDTFA-65, the agency mails a Confirmation of Closeout letter to the address in Box 5. The letter states the official close date, lists any returns still outstanding, and confirms the permit number is surrendered.
If a final return is missing, CDTFA holds the closeout open and sends a Demand for Tax Return. Once the final return posts and any balance is paid, the account moves to closed status. Successor liability reviews under R&TC §6811 can take 60 to 120 days because CDTFA must reconcile audit history before issuing a clearance certificate.
You may still receive correspondence after closeout if CDTFA later opens an audit covering periods before the close date, since the statute of limitations under R&TC §6487 generally allows a three-year lookback (or eight years for unfiled periods). Keep your books and final return for at least four years.
A misconception is that a closed account cannot be reopened. It can — if you restart the same business, CDTFA can reactivate the same account number, but if you have started a new entity, you need a fresh permit application.
Mistakes to Avoid When Filling Out the Form
- Wrong close-of-business date. Reporting the lease-end date instead of the last sale date triggers an assessment for sales made after your stated close date.
- Skipping the final return. Filing CDTFA-65 without a final CDTFA-401-A leaves the account open and earns a 10% late penalty.
- Listing DBA instead of legal name. The form fails the automated match and sits in the exception queue.
- Leaving successor information blank in a sale. The buyer cannot get a §6812 clearance, exposing them to personal liability.
- Using a P.O. Box in Box 4. CDTFA needs the physical address; a P.O. Box restarts the review.
- Forgetting to return the physical permit. Mailing CDTFA-65 without the permit keeps the closeout in pending status indefinitely.
- Wrong reason code in Box 8. Marking out of business on a sold business hides the successor and skips the clearance review.
- Ignoring use tax on retained inventory. Keeping inventory for personal use is taxable under R&TC §6094.
- Signing without authority. A non-officer signing for an LLC or corporation invalidates the form.
- Filing before the close date. CDTFA rejects forms with a future close date in Box 7.
Do’s and Don’ts
Do:
- Download a fresh copy of CDTFA-65 every time, because field labels and addresses change between revisions.
- File a final return before or with CDTFA-65 to avoid a delinquency penalty.
- Use certified mail with return receipt if filing by paper, because CDTFA’s processing queue does not always log mailed forms quickly.
- Keep copies of the bill of sale, escrow instructions, and proof of inventory disposition for at least four years to match the §6487 lookback period.
- Notify the Secretary of State and the FTB separately, because CDTFA-65 only closes your tax account.
- Use a personal mailing address in Box 5 if your business mail is being shut off, so you actually receive the Confirmation of Closeout.
Don’t:
- Don’t write the FEIN where the CDTFA account number belongs.
- Don’t backdate the close-of-business date to dodge a quarter — CDTFA cross-checks against bank deposits.
- Don’t leave Box 9 blank, because inventory disposition is the single most-questioned field by reviewers.
- Don’t email a scan of the form to a CDTFA staffer expecting it to count as filing.
- Don’t dissolve your LLC at the Secretary of State before filing CDTFA-65, because an authorized signer must still exist.
- Don’t lose the on-screen confirmation from the online portal, because it is your only proof of timely filing.
Pros and Cons of Filing on Your Own vs. With Help
Pros of filing on your own:
- No professional fee, which matters when a business is closing for financial reasons.
- Full control over timing — you file the moment your last sale clears.
- Direct communication with CDTFA reviewers, with no game-of-telephone delay.
- Better understanding of successor liability and your final return obligations.
- Faster turnaround through the online portal than waiting on a CPA’s calendar.
Cons of filing on your own:
- Easy to miss the §6812 clearance step in a bulk sale, which can expose the buyer.
- Final return math errors carry a 10% penalty under §6591.
- No professional review of inventory disposition for use-tax exposure.
- Time cost — the average filer spends 3 to 5 hours gathering documents.
- No representation if CDTFA later opens an audit on a closed account.
FAQs
Do I need to file CDTFA-65 if I never made any sales?
Yes. Even a permit holder with zero sales must file CDTFA-65 to close the account; otherwise CDTFA keeps expecting no-sales returns and may assess penalties for non-filing.
Can I file CDTFA-65 before my last day of business?
No. CDTFA-65 must be filed on or after your close-of-business date, because the form certifies a date that has already happened.
Do I have to file a final sales tax return separately?
Yes. CDTFA-65 closes the account, but the final CDTFA-401-A reports your last period’s tax and must be filed by the normal due date.
Should I write my legal name or my DBA in Box 2?
Yes — legal name. Box 2 takes the legal name on file with CDTFA, and the DBA goes in Box 3.
Do I write the lease-end date in Box 7?
No. Box 7 takes the date of your last taxable sale, which is often earlier or later than the lease-end date.
Can a buyer be liable for my unpaid sales tax?
Yes. Under R&TC §6811, a buyer is liable up to the purchase price unless they obtain a tax clearance certificate.
Can my spouse sign CDTFA-65 for me?
No. Unless your spouse is a listed partner or holds a CDTFA-392 Power of Attorney, they cannot sign for you.
Do I need to write N/A in Box 10 if there is no buyer?
Yes. Write None or N/A — leaving Box 10 blank triggers a follow-up letter and delays closeout.
Can I close my account online instead of using the paper form?
Yes. The CDTFA Online Services portal supports closeout for most account types and is faster than paper.
Do I owe tax on inventory I keep for personal use?
Yes. Under R&TC §6094, personal-use withdrawals are taxable at cost and must be reported on the final return.
Can I file CDTFA-65 if my LLC has already dissolved?
No. An authorized signer must still exist; file CDTFA-65 before finalizing dissolution with the Secretary of State.
Will CDTFA send me confirmation that the account is closed?
Yes. CDTFA mails a Confirmation of Closeout letter, usually within two to six weeks of receiving a complete CDTFA-65.
Do I need to fax in the form even if I mailed the original?
No. One channel is enough; duplicate filings can create two pending records and slow processing.
Can I reopen a closed CDTFA account?
Yes. If you restart the same business, CDTFA can reactivate the original account number rather than issuing a new one.
Related reading
- How to Fill Out California Form CDTFA-1054 (w/Examples) + FAQs
- How to Fill Out California Form CDTFA-401-A (w/Examples) + FAQs
- How to Fill Out California Form CDTFA-345 (w/Examples) + FAQs
- How to Fill Out California Form CDTFA-1010 (w/Examples) + FAQs
- How to Fill Out California Form CDTFA-269 (w/Examples) + FAQs
- How to Fill Out California Form CDTFA-91 (w/Examples) + FAQs
- How to Fill Out California Form CDTFA-501-AB (w/Examples) + FAQs