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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an EIN with the IRS when shutting down a business. An Employer Identification Number (EIN) serves as a tax identification number, akin to a social security number for individuals, applicable to various business structures like sole proprietorships, LLCs, or corporations. When winding down a business, it's crucial to close the EIN to avoid any future filings, payments, or taxes associated with a non-existent entity. This closure also helps prevent potential fraud, as open accounts could be exploited.
