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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 crucial to close the EIN to avoid future filings, payments, or taxes, even after the business has ceased operations. This step not only helps to ensure compliance with tax obligations but also acts as a preventative measure against potential fraud, as leaving accounts open may expose the business to unauthorized activities.