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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling an 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, and can be issued to sole proprietorships, LLCs, or corporations. It is essential to close the EIN to avoid future filings, payments, or taxes due after the business ceases to exist. Additionally, closing accounts helps prevent potential fraud, as leaving accounts open could allow unauthorized access.
