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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an 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 address the EIN to avoid future filings, payments, or taxes, even if the business is no longer operating. Additionally, closing the EIN helps prevent potential fraud, as leaving accounts open could allow others to misuse them. Addressing the EIN is a crucial step in properly dissolving a business.
