We plan to switch from Bank A to Bank B and we are currently under Franchise Tax Board audit. We also recently realized that account in Bank A is with outdated EIN that we forgot to update to SSN when business structure changed from General Partnership to Sole Proprietorship.

Now we want to close this bank account because of fraud reasons (someone made a withdrawal and we are afraid that he might do it again).

Is it ok for me to close account in Bank A if I am already under tax audit?

Few things that crossed my mind:

  1. Would FTB think that I am trying to hide something by closing bank account in Bank A?
  2. Could FTB ask for transaction history for this account?
  3. Should I try to get transaction history (or some other records) from Bank A while I am still customer with them so that I would have more records at my disposal?
  • Ask the auditors? I suspect that is also the answer: ask them before doing so, so they know what's being moved where.
    – keshlam
    Mar 30, 2016 at 23:17


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