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In this tutorial, attorney Elizabeth Potts Weinstein explains 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, and can be obtained by sole proprietorships, LLCs, or corporations. Weinstein emphasizes the importance of closing the EIN to avoid future filings, payments, or taxes that could arise after the business ceases to exist. Additionally, this action helps in preventing potential fraud by reducing the chance of someone misusing an open EIN for illicit purposes.
