How to Close an EIN

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. Closing the account closes the account, not the number: an EIN is 9 digits, permanent, and is never reassigned to another business, so the one you were issued on Form SS-4 stays yours.

The closing process

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

Sample closing letter

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

All 4 of those are state matters and none of them happen because you closed the federal account. State processes vary, so check your Secretary of State website or your state Department of Revenue for the order they want them in.

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. Payroll accounts are the trap: a business with an open federal payroll registration owes a Form 941 every quarter, 4 a year, showing zero, until the account is formally closed. 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.