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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 acts as a tax identification number for businesses, similar to a social security number for individuals. It is important to close your EIN to avoid future filings, payments, or taxes owed after the business is no longer operating. Closing the EIN can also help prevent potential fraud, as leaving accounts open may enable unauthorized use. Thus, taking this step is crucial for properly winding down your business.
