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In this tutorial, attorney Elizabeth Potts Weinstein explains 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. It is important to close your EIN to avoid any future tax responsibilities or filings after the business is no longer active. Closing the EIN also helps prevent potential fraud, as leaving accounts open could allow others to exploit the situation. Properly managing your EIN is a crucial step in the business shutdown process.
