Are you looking for answers to the question “How to Close an EIN Account”? This article will provide a comprehensive explanation of the steps you need to take to close your business, take care of your employees, pay the tax you owe, and understand what you need to do with your EIN.

What is an EIN?

An Employer Identification Number (EIN) is a nine-digit number assigned by the Internal Revenue Service (IRS) to a business. It is used to identify and track businesses for tax purposes.

What are the Steps to Close Your Business?

In order to close your business, you must take the following steps:

  • File a Final Return and Related Forms – You must file a final tax return and related forms before you can close your business. The exact forms you need to file will depend on the type of business you are operating.
  • Take Care of Your Employees – Before you can close your business, you must take care of any employees you have. This includes paying them any wages or other compensation they are owed, as well as providing any benefits they are eligible for.
  • Pay the Tax You Owe – You must pay any taxes you owe before you can close your business. The taxes you owe will depend on the type of business you are operating and other factors.

Can I Cancel My EIN?

The only way to close your business account with the IRS is by sending a letter to the IRS office. The letter must explain the reason you are closing the account. You cannot cancel your EIN; however, the business account associated with the EIN may be closed. If the EIN is needed in the future, it will still belong to the business.

To close your tax account, send a letter to the IRS that includes your company’s complete legal name, address, EIN, and a statement that you are no longer doing business. The letter must be signed by an authorized representative of the business. Mail your EIN Cancellation letter to the Internal Revenue Service at:

Internal Revenue Service
Attn: EIN Cancellation
P.O. Box 12192
Covington, KY 41012-0192

Conclusion

Closing a business can be a difficult process, but with the proper steps, it can be done. Before you close your business, make sure to file a final return and related forms, take care of your employees, and pay the tax you owe. You cannot cancel your EIN, but you can close the business account associated with it. To do this, send a letter to the IRS explaining why you are closing the account. Once the IRS receives your letter and closes your account, your business will be officially closed.

If you need help understanding the process of closing a business or have any other questions about selling a business, Atlantabusinesses.com is a great resource. Visit atlantabusinesses.com to learn more about business brokers and other topics related to selling a business.

Should I get rid of my EIN if I shut down my business?

Once you have finished paying taxes, submit a request to have the IRS close the business’s EIN account. Please keep in mind that this will simply terminate the tax obligations; the number will still be exclusively associated with your business and will never be given to another company.

Is it possible to terminate my EIN electronically?

Note that while you can’t cancel an EIN, you can close your account with the IRS by sending a letter to the appropriate office and providing detailed information regarding your business.

What are the steps to shut down a business with an EIN?

To cancel your EIN and close your IRS business account, please send us a letter that includes the full legal name of the business, the EIN, the address of the business, and the reason you wish to close the account.

What are the consequences of not closing your EIN?

An EIN number assigned to a business is never reused or reassigned, meaning that even if the corporation is closing up shop, the number will remain on record. Therefore, the Internal Revenue Service (IRS) can easily access the business’s tax records by referring to the EIN number, if needed in the future.