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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, similar to a social security number for individuals, applicable to various business structures like sole proprietorships, LLCs, or corporations. It's crucial to close your EIN to avoid future filings or payments, ensuring no taxes are due despite the business's closure. Additionally, this step helps prevent potential fraud that could occur if accounts remain open.
