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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 business's tax identification number, similar to a social security number for individuals. When closing a business, it's important to formally close the EIN to avoid any future filings, payments, or tax liabilities, even if the business is no longer operating. Closing the EIN also helps prevent potential fraud that could occur if accounts remain open, as someone could exploit this situation improperly.
