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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. An EIN, often seen as a business's equivalent of a social security number, serves as its tax identification number, applicable to various business structures like sole proprietorships, LLCs, or corporations. Weinstein emphasizes the importance of closing the EIN to avoid future filings, payments, or taxes owed after the business ceases operations. Additionally, closing accounts helps mitigate the risk of fraud, as leaving them open could allow unauthorized access and misuse.
