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In this tutorial, 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 the tax identification number for a business, similar to a social security number for individuals, and can be associated with sole proprietorships, LLCs, or corporations. It is crucial to close the EIN to avoid future obligations such as filings, payments, or taxes that may arise even after the business is no longer operational. Additionally, closing the EIN helps prevent potential fraud, as leaving accounts open could allow unauthorized individuals to misuse the business's identity.
