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In this video, attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an Employer Identification Number (EIN) with the IRS when shutting down a business. She explains that an EIN serves as a tax identification number for businesses, akin to a social security number for individuals. It is crucial to close the EIN to avoid future tax filings, payments, or liabilities even after the business has ceased operations. Additionally, closing the EIN helps prevent potential fraud, as leaving accounts open could allow others to exploit the business's identity.
