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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 various business structures, similar to a social security number for individuals. It is essential to close your EIN to avoid future filings, payments, or taxes even after the business ceases operations. Additionally, closing your EIN helps prevent potential fraud that may occur if accounts remain open. Properly addressing the EIN is a crucial step in the business closure process.
