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Attorney Elizabeth Potts Weinstein explains the process of closing or canceling an Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN serves as the tax identification number for various business entities, similar to a social security number for individuals. It is essential to address the EIN to avoid future filings, payments, or taxes associated with a non-existent business. Additionally, closing the EIN helps prevent potential fraud, as leaving accounts open can lead to misuse. Therefore, it's crucial to formally close your EIN as part of the business dissolution process.
