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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an Employer Identification Number (EIN) with the IRS, particularly relevant for those shutting down a business. An EIN serves as a tax identification number similar to a social security number for individuals. It can be obtained by sole proprietors, LLCs, or corporations. To properly close a business, it’s essential to address the EIN to avoid future tax filings, payments, or obligations associated with a non-existent business. Closing the EIN also helps prevent potential fraud that could occur if accounts remain open.
