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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 a business, similar to a social security number for individuals. It is essential to address the EIN during the business closure to avoid future filings, payments, or taxes associated with a non-existent business. Closing the EIN also helps mitigate the risk of potential fraud, as leaving accounts open could allow others to exploit them. Overall, managing your EIN is a critical step in properly winding down a business.
