When a business comes to an end, it does not simply fade away. There are still processed to be taken to dissolve the business properly. For instance, at the federal level, generally, an entity must file an annual return for the year it discontinues to operate. Tax forms must be filed with the Internal Revenue Service (IRS) before a business dissolution by the federal government. Apart from these tax forms, there are also state tax requirements that a business must fulfill. But what about the EIN?

A common misconception is that after all tax returns have been filed, the IRS will automatically cancel the business’s EIN. However, you should keep in mind that an EIN for a business is never discontinued, reused, or reassigned. It does not matter if the EIN was ever used or not, Employer Identification Number is permanent. The Internal Revenue Service (IRS) cannot cancel an EIN; however, the business that is associated with the EIN might be closed. If you want to use the EIN in the future, it will still be a part of the business even after the business account is closed.

Nevertheless, if you need to close your business account with the IRS, then you must send a written letter to the Internal Revenue Service. The letter must state the reason you are closing the account, you should also include the following:

  • EIN
  • The Complete Legal Name of the Entity
  • Business Address
  • Copy of the EIN Assignment Notice (If Applicable)

 

If you need an EIN for your business, apply for one by clicking here, or if you have any further questions, please do not hesitate to contact us via [email protected]. You can also reach us at +1 (302) 803-9501. We are always glad to help you!