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In this tutorial, 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 similar to a social security number for individuals and can be obtained by various business structures, including sole proprietorships, LLCs, and corporations. Closing the EIN is crucial to prevent future filings, payments, or taxes from accumulating, even after the business has ceased operations. Additionally, it helps mitigate the risk of fraud, as leaving accounts open could potentially lead to unauthorized activities.
