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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 and can be obtained by various business structures like sole proprietorships, LLCs, or corporations. It's essential to close the EIN to avoid future tax filings, payments, or liabilities after the business ceases operations. Additionally, closing the EIN helps prevent potential fraud that could occur if accounts remain open.
