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Attorney Elizabeth Potts Weinstein discusses the process 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, similar to a social security number for individuals. It is crucial to properly close the EIN to avoid future tax filings, payments, or liabilities associated with a non-existent business. Additionally, closing the EIN helps protect against potential fraud, as maintaining open accounts could allow unauthorized individuals to exploit the business’s identity. Taking these steps ensures that all aspects of business closure are managed effectively.
