Where to Send an EIN Cancellation Letter?

An Employer Identification Number (EIN) serves as a unique federal tax ID for businesses, akin to a Social Security number for individuals. Assigned by the Internal Revenue Service (IRS), this nine-digit number is crucial for various business activities, including filing tax returns, opening business bank accounts, and hiring employees. While an EIN is a permanent identifier, circumstances can arise where a business no longer needs the associated tax account to be active. This article guides you on formally closing an EIN account with the IRS.

When to Close an EIN Account

Businesses may need to close their EIN account with the IRS for several reasons. Common scenarios include complete business closure (sole proprietorship, partnership, or corporation). For instance, if a sole proprietor ceases operations and no longer has employees, the EIN account should be closed. Similarly, if a business was formed but never commenced operations or hired employees, the EIN account can be closed.

A change in business structure often requires closing the old EIN account and applying for a new one. If a sole proprietorship incorporates, or a partnership transitions into an LLC, the original EIN may no longer be appropriate for the new entity. If a sole proprietor passes away, their estate would need to close the existing EIN account. Occasionally, if an applicant mistakenly obtains multiple EINs for the same entity, the duplicate or unused EIN should be closed to maintain accurate IRS records.

Information for Your Closure Letter

To formally close your EIN account, send a written letter to the IRS with specific details. The letter should state the entity’s full legal name (as it appears on IRS records) and complete business address. Include the Employer Identification Number (EIN). Providing a copy of the original EIN Assignment Notice can help the IRS process the request.

The letter must specify the reason for the account closure (e.g., “Business ceased operations,” “Sole proprietor deceased,” or “New EIN obtained due to change in structure”). Include the date the business ceased operations or changed structure. If applicable, confirm the business has no employees and will not file federal tax returns under that EIN. A responsible party (owner, partner, or corporate officer) must sign the letter and provide a contact phone number for IRS inquiries.

Mailing Your Closure Letter

Mail your prepared closure letter to the IRS. The primary address is: Internal Revenue Service, Cincinnati, OH 45999. This address suits most U.S. business types. The IRS does not offer an option to fax or email EIN closure requests; physical mail is the required method.

Send the letter via certified mail with a return receipt requested. This provides proof of delivery and a valuable record. The IRS processes these requests, though a formal confirmation letter may not always be sent. Ensure all outstanding federal tax returns are filed and taxes paid before sending the letter, as the IRS cannot close the account until these obligations are met.