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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. It is crucial to close your EIN to avoid future tax filings, payments, or potential fraud after the business ceases to exist. By formally closing the EIN, you can prevent unauthorized use and ensure that all business obligations are settled, thereby maintaining compliance with IRS regulations.