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Attorney Elizabeth Potts Weinstein explains how to close or cancel your Employer Identification Number (EIN) with the IRS when shutting down a business. The EIN serves as a tax identification number, similar to a Social Security number for individuals, and is issued by the IRS. Whether you used it as a sole proprietorship, LLC, or corporation, it’s important to close your EIN to avoid future tax filings, payments, or potential fraud issues. Keeping accounts active may facilitate unauthorized use, so it’s advisable to properly address your EIN as part of the business shutdown process.
