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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 for businesses, similar to a social security number for individuals. It's important to properly close the EIN to avoid future tax filings, payments, or other obligations, even after the business ceases to exist. Closing the EIN also helps prevent potential fraud, as inactive accounts can be susceptible to misuse. Ensuring all accounts are closed is essential during the business shutdown process.
