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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 for a business, similar to a social security number for individuals. It can be obtained by various business structures, including sole proprietorships, LLCs, and corporations. Closing the EIN is essential to avoid any future filing obligations, payments, or taxes after the business has ceased operations. Additionally, closing accounts helps mitigate the risk of potential fraud that could arise if the accounts remain open.
