If you decided to cancel EIN number for a closed or restructured business, follow this clear guide. You’ll learn the exact steps, what to include in your letter, the IRS mailing address, and what to expect after submission. But, is cancelling an EIN even possible and how to cancel your EIN? In this post, we are going to be discussing this topic in detail.
Contents
- 1 What Is an EIN and Why Might You Cancel It?
- 2 Steps to Cancel Your EIN with the IRS
- 3 What Happens After You Cancel Your EIN? How Cannot Cancel EIN Number?
- 4 Frequently Asked Questions
- 4.1 Do I have to file final returns if I request to cancel EIN?
- 4.2 Can I email or call to cancel EIN?
- 4.3 How long does it take to cancel EIN?
- 4.4 How do I cancel my EIN number?
- 4.5 What is the easiest way to close an LLC?
- 4.6 Can I dissolve my LLC and keep my EIN?
- 4.7 What happens if you have two EIN numbers?
- 4.8 What happens if I don’t close my business?
What Is an EIN and Why Might You Cancel It?
An Employer Identification Number is a unique nine-digit identifier for tax administration. Owners choose to cancel EIN when they permanently close the business, never used the number, or restructure into an entity that needs a new EIN.
What is EIN Cancellation?
EIN cancellation is the formal process of closing a business account with the Internal Revenue Service when an Employer Identification Number is no longer needed. Businesses may request to cancel EIN if they are permanently shutting down, never used the number, or restructuring in a way that requires a new EIN.
The process involves sending a written request to the IRS with business details, the EIN itself, and the reason for closure, after which the IRS issues a confirmation letter verifying that the account is closed.
When Should You Cancel EIN Number? How do I Close My EIN Number?
You should request to cancel EIN if your business has been permanently closed or legally dissolved, if the EIN was assigned but never used on a tax return, or if you changed your business structure in a way that requires a new number, such as converting from a sole proprietorship to a corporation.
In these cases, it is more accurate and compliant to cancel EIN with the IRS instead of leaving the account open, which could lead to unnecessary correspondence or confusion in the future.
The IRS does not automatically close accounts. You must submit a written request to cancel EIN, and you remain responsible for any final filings due.
Steps to Cancel Your EIN with the IRS
If you decide to cancel EIN number with the irs, you must follow the official procedure set by the Internal Revenue Service. The IRS does not automatically close your business account, even if you stop operations, so it’s important to take the correct steps.
By preparing the right documents, writing a proper cancellation letter, and mailing it to the IRS, you can ensure that your EIN is officially closed and avoid unnecessary complications in the future.
Step 1: Preparing the Required Information and Documents
Before you request to cancel EIN, it’s essential to gather all the necessary details to avoid delays in processing. Make sure you have the legal business name and EIN, the current business address with contact information, and a clear explanation of why the account is being closed. If available, also include a copy of the original permanent federal taxpayer identification number assignment notice (CP 575). Providing complete and accurate documentation ensures the IRS can quickly confirm and process your request to cancel EIN.
Gather the following before you write your letter to cancel EIN to file form:
- Legal business name and EIN.
- Business address and contact details.
- Reason for closing the account.
- Copy of the original EIN assignment notice (CP 575), if available.
Step 2: Writing a Formal EIN Cancellation Request
Draft a signed letter asking the IRS to cancel EIN and close the business account. Include the business name, EIN, address, and a brief statement that the business is closed or that the assigned number was never used.
Sample Letter (copy/paste and edit):
Internal Revenue Service
Subject: Request to Close Business Account and Cancel EIN
Business Name: [Your Legal Name] EIN: [XX-XXXXXXX] Address: [Street, City, State, ZIP]
Dear IRS,
I am requesting to cancel EIN and close the business account listed above. The business has been permanently closed / the EIN was assigned but never used. Please update your records and mail a confirmation of closure.
Sincerely,
[Name and Title]
[Signature]
Where to Send Your EIN Cancellation Letter?
Once you have prepared and signed your request to cancel EIN, you need to mail it to the correct IRS address for processing. Send your letter, along with the original EIN assignment notice (CP 575) if available, to:
Internal Revenue Service
Cincinnati, OH 45999
This is the official IRS mailing address for EIN cancellation requests. Be sure to keep a copy of your letter for your records and track the correspondence until you receive the IRS confirmation letter.
What Happens After You Cancel Your EIN? How Cannot Cancel EIN Number?
When you decide to cancel EIN, the process doesn’t end with sending your request to the IRS. There are important steps that follow, including receiving a confirmation letter, filing any final tax returns, and understanding the status of your cancelled number. Knowing what happens after cancellation helps you stay compliant and avoid unnecessary issues with the IRS in the future.
IRS Processing Time and Confirmation Letter
After submitting your request to cancel EIN, the IRS typically processes the closure within a few weeks. They will mail you a confirmation letter once the account is officially closed. It is important to keep this letter in your permanent records, as it proves that your EIN has been cancelled and the business account is no longer active.
Tax Obligations After EIN Cancellation
Requesting to cancel EIN does not erase your previous tax responsibilities. You must still file all final tax returns that apply, including employment, partnership, or corporate filings. Additionally, any outstanding balances should be paid before or shortly after you send your cancellation request to avoid IRS penalties.
Can a Cancelled EIN Be Reused?
A cancelled EIN cannot be reassigned or reused for another business. Once you choose to cancel EIN, the number becomes part of your historical tax record only. If you start a new business later, you will need to apply for a brand-new EIN from the IRS.
Frequently Asked Questions
If you are considering whether to cancel EIN, you may have several doubts about the process. Many business owners wonder about tax obligations, how to submit the request, and how long it takes for the IRS to confirm cancellation and if you no longer need your ein. Below, we answer the most common questions to help you better understand the EIN cancellation procedure.
Do I have to file final returns if I request to cancel EIN?
Yes. Even after you decide to cancel EIN, you must file all required final tax returns and pay any outstanding balances. Closing the EIN account does not remove your previous tax responsibilities.
Can I email or call to cancel EIN?
No. The IRS requires a signed written request to cancel EIN. You cannot complete the process by phone or email. Make sure to mail your cancellation letter and include business identifiers such as the legal name, address, and EIN.
How long does it take to cancel EIN?
The processing time for a request to cancel EIN varies. Generally, you can expect a confirmation letter from the IRS within a few weeks. Keep a copy of your letter and wait for the official confirmation to finalize the closure.
How do I cancel my EIN number?
To cancel EIN, you must send a signed letter to the IRS stating that you want to close your business account. Include the legal business name, EIN, address, and reason for cancellation. Attach your original EIN assignment notice (CP 575) if available.
What is the easiest way to close an LLC?
The easiest way to close an LLC is to file dissolution documents with your state and settle all debts and tax obligations. After dissolution, you should also request to cancel EIN with the IRS to avoid unnecessary correspondence.
Can I dissolve my LLC and keep my EIN?
No. Once your LLC is dissolved, the EIN should be closed with the IRS. The number becomes part of your tax record, and you cannot reuse it for a new entity. If you start another business, you must apply for a new EIN.
What happens if you have two EIN numbers?
If you mistakenly received two EINs for the same business, you must contact the IRS. They will advise you which EIN to keep and how to cancel EIN that is not valid to avoid confusion in future tax filings.
What happens if I don’t close my business?
If you do not officially close your business and fail to cancel EIN, the IRS may continue expecting tax filings. This could lead to unnecessary penalties or notices. Properly dissolving your entity and cancelling your EIN ensures compliance and peace of mind.
