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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 serves as a tax identification number for various business structures, similar to a social security number for individuals. When closing a business, it's essential to cancel the EIN to avoid future filings, payments, or taxes associated with a non-existent business. This step also helps prevent potential fraud, as leaving accounts open could allow unauthorized individuals to misuse them. Therefore, managing your EIN is a crucial part of the business closing process.