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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 acts as a tax identification number for businesses, similar to a social security number for individuals. It is essential to handle your EIN properly during the business closure to ensure that there are no upcoming filings, payments, or taxes owed after the business ceases to exist. Additionally, closing the EIN helps to prevent potential fraud, as leaving accounts open may expose the business to identity theft or unauthorized use.