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Thursday, February 1, 2018

Canceling an EIN "Employer Identrification Number"

 
If, for some reason, you have an old EIN with the IRS, the IRS can close your business account.

The IRS cannot cancel your EIN. Once an EIN has been assigned to a business entity, it becomes the permanent Federal taxpayer identification number for that entity. Regardless of whether the EIN is ever used to file Federal tax returns, the EIN is never reused or reassigned to another business entity. The EIN still belongs to the business entity and can be used at a later date, should the need arise.

If you receive an EIN but later determine you do not need the number (the new business never started up, for example), the IRS can close your business account.

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

If you have a copy of the EIN Assignment Notice that was provided by the IRS when your EIN was assigned, include that with your letter.

Send the information to:

Internal Revenue Service
Cincinnati, Ohio 45999

To prevent potential tax issues down the road, it is a good idea to take the above steps to close your business account with the IRS.

 
This article was written by Donald M. Scherzi, CPA, CFP, LLC
Mike Lupo, SCORE Counselor
Visit us at: www.scoresouthflorida.net

 

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