Can an EIN really be canceled?
The IRS doesn’t have a process to cancel an Employer Identification Number (EIN). Instead, they are not really canceled but rather cease to be used.
However, if you determine that you no longer need the EIN assigned to you, you can close your business account with the IRS.
When an EIN is granted to a business entity, it remains associated with that entity and is not reused for another business.
It continues to serve as the federal identifier for that entity, regardless of whether it is used for filing federal tax returns in the future or not.
In short, the EIN remains the property of the same business entity and can be used again in the future if necessary.
Cases in which you can cancel the Employer Identification Number
If your business permanently closes and you have no more employees or outstanding tax obligations, you can request the cancellation of your EIN.
You must notify the IRS that you want to close your business account by submitting a letter explaining the reason for the cancellation.
Inheritance or Business Transfer
In cases of inheritance or the transfer of a business to a new owner, the new owner may need to apply for a new EIN. The old one can be canceled in that process.
Changes in Legal Structure
If you change the legal structure of your business (from a corporation to an LLC, for example), you may need to apply for a new EIN and cancel the old one.
Errors in the Application
If you made a mistake when applying for an EIN and need to correct it, you should contact the IRS and provide the correct information. This doesn’t always mean you need to cancel your EIN, but it may require a correction.
So, How Can You Close a Business Account?
To close your business account, you need to send a letter to the IRS that includes:
- The full legal name of the entity.
- Your business’s EIN.
- The business address.
- An explanation of why you want to close the account.
If you have a copy of the Notice of Assignment of Employer Identification Number or retained the one provided to you when the number was assigned, it is advisable to include it with your lettercommunication.
To send the EIN cancellation letter, use the following address:
Internal Revenue Service
Cincinnati, Ohio 45999
IRS Locations to Cancel Your EIN
If your business, company, or headquarters is located in:
- North Carolina,
- South Carolina,
- New Hampshire,
- New Jersey,
- New York,
- Rhode Island,
- West Virginia,
- Washington D.C,
You can send a letter to the Internal Revenue Service (IRS) at Stop 343g, Cincinnati, Ohio 45999 or fax it to 859-669-5748.
If your business, company, headquarters, or office is located in:
- North Dakota,
- South Dakota,
- New Mexico,
- Or anywhere outside of the United States
Send a letter to the Internal Revenue Service (IRS) at M/S 6273, Ogden, Utah 84201 or fax it to 801-620-7116.
How to Cancel an EIN for Exempt Organizations (Nonprofits)
Exempt organizations (in the United States) refer to non-profit entities or organizations that are exempt from paying certain federal taxes due to their specific purpose and activities.
They are classified as exempt because they are dedicated to charitable, religious, educational, scientific, literary, cultural, or public benevolent activities, and their income is primarily used to promote these nonprofit purposes.
If you have obtained an Employer Identification Number (EIN) for an exempt organization that has never applied for formal exemption or has not filed an informational return, you can close the account by sending a letter to the following address:
Internal Revenue Service
Attn: EO Entity
Mail Stop 6273
Ogden, UT 84201
Remember to include an explanation of why you wish to close the account in your letter, as it is necessary.
Need Help Canceling an EIN?
If you wish to delegate this process, Rex Legal can assist you in closing your business account and canceling your EIN.
Simply contact us, and we will be happy to help.