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In this tutorial, 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, akin to a social security number for individuals, applicable to sole proprietorships, LLCs, or corporations. It's essential to officially close the EIN to avoid future tax filings, payments, or obligations that could arise after the business's closure. Additionally, closing the EIN helps mitigate the risk of fraud, as leaving accounts open could allow for unauthorized use.
