✓ Closing

How to Close an EIN

When the business ends. Final returns, the closing letter, and what the state still needs from you.

By Reba Donaldson · Last reviewed: April 2026

The IRS does not "cancel" EINs

Once issued, an EIN stays in IRS records permanently. The IRS will not delete or recycle it. What you can do is close the business account associated with the EIN, which signals to the IRS that the entity has wound down.

When to close the EIN account

Close the EIN account when:

You permanently dissolve the business (LLC, corp, partnership)
You close a sole proprietorship and will not be using the EIN anymore
You merge or consolidate with another entity (the surviving entity uses its own EIN)
You filed final tax returns and do not expect any further activity

Do NOT close the EIN if you are temporarily not operating but might restart. The EIN can sit dormant indefinitely.

The closing process

Closing an EIN account is a manual process. There is no online form.

Steps

1. File final tax returns

Mark the appropriate "Final return" box. For partnerships and corporations, this is on the cover of Form 1065 or Form 1120. For sole proprietors, it is checking that you no longer operate the business on Schedule C.

2. Pay any outstanding taxes

Including payroll taxes, sales taxes (state-level), and franchise taxes. The IRS will not close the account if there are open balances.

3. Write a letter to the IRS

Address the letter to: Internal Revenue Service, Cincinnati, OH 45999. Include the legal name of the business, the EIN, the business address, and the reason you are closing the account.

4. Attach the original CP 575

If you still have the original EIN confirmation letter, include a copy. Not strictly required, but speeds processing.

Sample closing letter

To: Internal Revenue Service
Cincinnati, OH 45999

Re: Closure of business account, EIN 12-3456789

Please close the business account for the entity below. The business has ceased operations, and final tax returns have been filed.

Legal name of business: Acme LLC
EIN: 12-3456789
Business address: 123 Main St, Anytown, ST 12345
Reason for closure: Business dissolved on March 15, 2026.

Thank you for your assistance.

[Signature]
[Printed name and title]

What to do at the state level

Federal EIN closure is one piece. The state where you formed the entity also has a process:

File Articles of Dissolution (LLC) or Articles of Termination (corporation) with the state
Cancel state tax registrations (sales tax, employer withholding, etc.)
Cancel local business licenses
Close any state-level employer accounts

State processes vary. Check your Secretary of State website or your state Department of Revenue.

What if I just want to "pause"?

You do not need to close the EIN to pause a business. The EIN can remain dormant for years. As long as you are not generating income, you do not file business returns. When you restart, the EIN is still there.

The exceptions: payroll tax accounts (state and federal) require zero-dollar filings even when not running payroll, until you formally close them. Same for some state-level franchise tax accounts. Closing those accounts is a separate process from closing the federal EIN.

Once closed, can I reopen?

If you closed an EIN account and later want to reactivate the business, you generally need to apply for a NEW EIN. The IRS treats the closure as final for that entity. The original number is preserved in records but cannot typically be reactivated for new operations.