How to Cancel or Close an EIN

Why the IRS does not cancel numbers

An EIN is a record locator. Returns, payroll filings, 1099s and notices from years past are all filed under it, and the IRS keeps them indefinitely. Deleting the number would orphan all of it. So the IRS never deletes an EIN; it marks the account closed, which stops it expecting returns, and leaves the history intact.

When closing the account is worth doing

• The business has closed. Final returns have been filed, employees paid off, accounts shut. Closing the EIN account tells the IRS to stop expecting filings and reduces the chance of a notice for a missing return.
• You obtained an EIN you never used. Applied for a business that never started, or got a second number by mistake. Closing the unused one keeps the record clean.
• You have two EINs for the same entity. Keep the one the bank and the returns use; close the other, and say in the letter that it was a duplicate.

When closing is the wrong move

• The EIN has the wrong business name. That is a name change, by letter, keeping the number. How to change the name on an EIN.
• The EIN was issued to you as a sole proprietor and you now have an LLC. The LLC needs its own new EIN. The sole proprietor number can then be closed if you will never use it, but the closure is not what gets the LLC its number.
• You are pausing the business. A dormant entity keeps its EIN. Reopening a closed account later is possible but slower than never closing it.

What to send

A letter to the IRS, mailed, containing:

• The complete legal name of the entity.
• The EIN.
• The business address.
• The reason you are closing the account: business closed, never used, duplicate.
• A copy of the original EIN assignment notice, the CP 575, if you have it. If not, say so; the IRS can still process it.
• The signature of the responsible party or an officer.

The IRS page in the sources below has the current mailing address. There is no online form and no phone option for this. Expect a written confirmation in several weeks.

Before you close: the final returns

The IRS will not close an account that still owes returns. A business that had employees files final employment returns and W-2s; a corporation or partnership files a final return marked as such; a sole proprietor files the last Schedule C. Close the state accounts too, since the state does not hear about the IRS closure.

Quick answers

Can I cancel my EIN and get a new one for the same business?

No. The same entity keeps the same number. If you want a different number you need a different entity.

Does closing the EIN account close the business?

No. The state dissolution is separate and comes first. The EIN closure is an IRS record update.

I applied twice by accident today. Which one do I close?

The second one, before anything is filed under it. Note that a second application on the same day normally returns reference number 114 rather than a second number, so check whether you actually have two.