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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 is a tax identification number for businesses, similar to a Social Security number for individuals. It is essential to close or cancel the EIN to prevent future tax obligations, filings, or payments once the business is no longer operating. Additionally, closing the EIN helps reduce the risk of fraud, as keeping accounts open could allow someone to exploit the business's information for illegal activities.