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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. The EIN serves as a tax identification number for businesses, similar to a social security number for individuals. It is necessary to formally close the EIN to avoid ongoing filings, payments, or taxes that may arise after the business ceases operations. Additionally, closing the EIN helps prevent potential fraud by eliminating the possibility of someone using an inactive account for fraudulent activities. Proper closure is a crucial step in the process of dissolving a business.