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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. An EIN acts as a tax identification number for various business entities, similar to a social security number for individuals. It’s important to close your EIN to avoid future tax filings, payments, or obligations after the business is dissolved. Additionally, closing the EIN helps prevent potential fraud, as lingering accounts may expose the business to unauthorized activities.
