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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, akin to a social security number for individuals. It's essential to cancel the EIN to avoid ongoing filings, payments, or taxes that could arise even after the business has ceased operations. This step also helps prevent potential fraud, as keeping accounts open could allow someone to exploit the situation. Properly closing the EIN is a crucial part of the business shutdown process.
