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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 functions as a business's tax identification number, similar to a social security number for individuals. It's essential to address the EIN when closing a business to avoid future tax filings, payments, or obligations that could arise even after the business ceases to exist. Additionally, canceling the EIN helps prevent potential fraud, as maintaining open accounts might allow for unauthorized activities. Properly closing everything ensures a clean termination of business operations.
