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In this tutorial, attorney Elizabeth Potts Weinstein discusses the process of closing or canceling your Employer Identification Number (EIN) with the IRS when shutting down a business. An EIN functions similarly to a Social Security number but for businesses, serving as their tax identification number. It's important to close the EIN to avoid future filings, payments, or taxes due after the business ceases operations. Additionally, closing the EIN helps prevent potential fraud, as leaving accounts open could expose the business to unauthorized use. Ensuring that all accounts are closed is a key step in the business shutdown process.
