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In this tutorial, 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 entities, similar to a social security number for individuals. It’s crucial to cancel your EIN to avoid future tax filings, payments, or liabilities that could arise even after the business ceases operations. Additionally, closing the EIN can help prevent potential fraud, as maintaining open accounts could allow others to exploit the information for fraudulent activities.
