Yes, if the business had employees and paid wages subject to federal income tax withholding or Social Security and Medicare taxes, Form 941 generally still needs to be filed for the applicable filing period, even if the sole proprietor has passed away.
Since the owner is deceased, the person legally authorized to act on behalf of the deceased owner’s estate, such as an executor, authorized individual, or other personal representative, should handle the required filing and sign the return.
If the business permanently closed or stopped paying wages, a final Form 941 may be required.
If the owner passed away and she/he was a sole proprietor, does Form 941 still need to be filed?
Yes, if the business had employees and paid wages subject to federal income tax withholding or Social Security and Medicare taxes, Form 941 generally still needs to be filed for the applicable filing period, even if the sole proprietor has passed away.
Since the owner is deceased, the person legally authorized to act on behalf of the deceased owner’s estate, such as an executor, authorized individual, or other personal representative, should handle the required filing and sign the return.
If the business permanently closed or stopped paying wages, a final Form 941 may be required.
Last modified: October 1, 2026
