How to Close Token Accounts

You can close a token account if you don't want to use it anymore. There are two situations:

Wrapped SOL - Closing converts Wrapped SOL to SOL
Other Tokens - You can close it only if token account's balance is 0.

import { Connection, Keypair } from "@solana/web3.js";
import {
  createMint,
  getOrCreateAssociatedTokenAccount,
  closeAccount
} from "@solana/spl-token";

(async () => {
  // Connect to local Solana node
  const connection = new Connection("http://127.0.0.1:8899", "confirmed");

  // Create a fee payer account
  const feePayer = Keypair.generate();

  // Request airdrop for fee payer
  const airdropSig = await connection.requestAirdrop(
    feePayer.publicKey,
    1000000000
  );
  await connection.confirmTransaction(airdropSig);

  // Step 1: Create a new mint
  const mintAuthority = feePayer;
  const freezeAuthority = feePayer;
  const decimals = 8;

  console.log("Creating mint...");
  const mint = await createMint(
    connection,
    feePayer,
    mintAuthority.publicKey,
    freezeAuthority.publicKey,
    decimals
  );
  console.log("Mint created:", mint.toBase58());

  // Step 2: Create Associated Token Account
  console.log("Creating token account...");
  const tokenAccount = await getOrCreateAssociatedTokenAccount(
    connection,
    feePayer,
    mint,
    feePayer.publicKey
  );
  console.log("Token account:", tokenAccount.address.toBase58());

  // Step 3: Close the token account
  const txSignature = await closeAccount(
    connection, // connection
    feePayer, // payer
    tokenAccount.address, // token account which you want to close
    feePayer.publicKey, // destination
    feePayer // owner of token account
  );
  console.log("Close Token Account:", txSignature);
})();