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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. She explains that an EIN, like a social security number for individuals, serves as a tax identification number for various business entities, including sole proprietorships, LLCs, and corporations. To avoid future tax filings, payments, or potential fraud associated with an open EIN, it is essential to formally close the account. This step ensures that all business obligations are settled and minimizes the risk of identity theft or fraud through inactive accounts.