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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 a business, similar to how a Social Security number functions for individuals. It is necessary to address your EIN when closing your business to avoid future filings, payments, or taxes that could arise even after the business ceases to exist. Additionally, closing your EIN helps prevent potential fraud by eliminating open accounts that could be exploited.
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