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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 various business structures, such as sole proprietorships, LLCs, or corporations. To avoid future tax filings, payments, and potential fraud associated with open accounts, it is important to properly close the EIN. This action ensures that all obligations are settled and helps protect against any fraudulent activities that might occur if the EIN remains active.
