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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 as a business's tax identification number, similar to a social security number for individuals. It is crucial to close your EIN to avoid future filings, payments, or taxes, even after the business is no longer operational. Additionally, closing the EIN helps prevent potential fraud, as leaving accounts open could create opportunities for unauthorized use. The video provides essential steps and considerations for effectively handling your EIN during business closure.
