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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling your Employer Identification Number (EIN) with the IRS when shutting down a business. She explains that an EIN acts as a tax identification number for businesses, similar to a social security number for individuals. It’s important to properly close the EIN to avoid future filings, payments, or taxes even after the business has ceased operations, as well as to prevent potential fraud. Leaving accounts open could expose the business to risks if someone attempts to commit fraud using the EIN.
