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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling your Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN serves as a tax identification number for a business, similar to a social security number for individuals. It's essential to close your EIN to avoid future filings, payments, or taxes that may arise even after the business has ceased operations. Additionally, closing your EIN helps prevent potential fraud that could occur if accounts remain open. This process is a crucial step in the business shutdown process.
