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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 for a business, similar to a social security number for individuals, and is necessary for various business structures such as sole proprietorships, LLCs, or corporations. Closing the EIN helps avoid future filings, payments, or taxes, ensuring that there are no obligations tied to a non-existent business. Additionally, it acts as a preventative measure against potential fraud by reducing open accounts that could be exploited.
