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In this video, attorney Elizabeth Potts Weinstein discusses the steps to close or cancel your Employer Identification Number (EIN) with the IRS when shutting down a business. She explains that an EIN functions as a tax identification number for businesses, similar to a social security number for individuals. It applies to sole proprietorships, LLCs, and corporations. Closing your EIN is important to avoid future tax filings, payments, or obligations associated with a non-existent business. Additionally, closing the EIN helps prevent potential fraud that can occur if accounts are left open.