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In this tutorial, 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 a business, similar to a Social Security number for individuals, and can be obtained by various business structures such as sole proprietorships, LLCs, or corporations. Closing the EIN is essential to prevent future filings, payments, or taxes that may arise after the business has ceased operations. It also helps to protect against potential fraud, as leaving accounts open could allow for unauthorized use of the information.
