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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 serves as a tax identification number, similar to a social security number for individuals, and is essential for any business structure, including sole proprietorships, LLCs, and corporations. It is crucial to officially close the EIN to avoid ongoing filings, payments, or taxes associated with a non-existent business, and to prevent potential fraud that could arise from leaving accounts open. Closing the EIN helps ensure all business activities are properly wrapped up.