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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 important to close the EIN to avoid future filings, payments, or taxes when the business no longer exists and to prevent potential fraud. Leaving accounts open may expose one to the risk of fraudulent activities, so it's advisable to properly manage the EIN during business dissolution.
