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Attorney Elizabeth Potts Weinstein discusses the process of closing or canceling your EIN (Employer Identification Number) with the IRS when shutting down a business. An EIN serves as a tax identification number for various business structures, similar to a social security number for individuals. It's crucial to properly close your EIN to avoid future filings, payments, or tax obligations associated with a non-existent business. Additionally, closing the account helps prevent potential fraud, as leaving accounts open could allow others to exploit them for fraudulent activities.
