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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 businesses, similar to a social security number for individuals. When closing a business, it’s important to address the EIN to avoid future tax filings, payments, or obligations that could arise even after the business ceases to exist. This closure also helps prevent potential fraud that could occur if accounts remain active. Therefore, ensuring the EIN is properly canceled is a key step in shutting down a business.
