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In this video, attorney Elizabeth Potts Weinstein discusses the importance 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, including sole proprietorships, LLCs, and corporations. Closing the EIN is essential to avoid future filings, payments, or taxes due when the business no longer exists. Additionally, it helps in preventing potential fraud, as leaving accounts open could allow someone to misuse the information for fraudulent activities.