How to close your EIN account with the IRS

Owners who close a business often want to cancel its EIN. The IRS does not delete EINs, but closing the account stops it expecting returns. This guide explains the order, the letter, and what to do with an EIN you never used.

By Awais Jameel, Chartered Accountant. Reviewed by Hamza Fida, Chartered Accountant. Checked against official sources on . 2 minute read.

Short answer

An EIN cannot be cancelled, because it is never reused, but the IRS will close the business account linked to it. File all final returns and pay any tax first. Then write to the IRS with the business's legal name, EIN, address and reason for closing, ideally with a copy of the EIN assignment notice. An unused EIN is closed the same way.

At a glance

Can an EIN be cancelled?
No, but the account can be closed
Before closing
File final returns and pay tax
How
A letter to the IRS
Include
Legal name, EIN, address, reason
Helpful
Copy of the EIN assignment notice
Unused EIN
Close it the same way
How to close your EIN account with the IRSSteps: 1. File every final return; 2. Pay any tax due; 3. Write to the IRS; 4. Attach the assignment notice; 5. Keep proof.THE PROCESS AT A GLANCEHow to close your EIN account with the IRS1File every finalreturnIncome, payroll andinformation returns,each marked final2Pay any tax dueThe IRS will not closean account with returnsor balances outstanding3Write to the IRSGive the legal name,EIN, business addressand the reason forclosing4Attach theassignment noticeA copy of the EINconfirmation letter, ifyou have it5Keep proofA copy of the letterand of how it was sentChecked against official sourcesTax BakersHow to close your EIN account with the IRSSteps: 1. File every final return; 2. Pay any tax due; 3. Write to the IRS; 4. Attach the assignment notice; 5. Keep proof.THE PROCESS AT A GLANCEHow to close your EIN account withthe IRS1File every final returnIncome, payroll and information returns,each marked final2Pay any tax dueThe IRS will not close an account withreturns or balances outstanding3Write to the IRSGive the legal name, EIN, business addressand the reason for closing4Attach the assignment noticeA copy of the EIN confirmation letter, ifyou have it5Keep proofA copy of the letter and of how it was sentChecked against official sourcesTax Bakers
The process at a glance: 1. File every final return; 2. Pay any tax due; 3. Write to the IRS; 4. Attach the assignment notice; 5. Keep proof.

Why can't an EIN be cancelled?

The IRS never reissues an EIN to another taxpayer, so there is nothing to cancel. Closing the account tells the IRS to stop expecting returns under that number. If the business restarts later, the same EIN can be used again, if it is still the same entity.

How do you close the account?

  1. File every final return

    Income, payroll and information returns, each marked final.

  2. Pay any tax due

    The IRS will not close an account with returns or balances outstanding.

  3. Write to the IRS

    Give the legal name, EIN, business address and the reason for closing.

  4. Attach the assignment notice

    A copy of the EIN confirmation letter, if you have it.

  5. Keep proof

    A copy of the letter and of how it was sent.

Send the letter to the address in the IRS guidance on closing a business account. See how to dissolve an LLC and, for foreign owners, how to close a foreign-owned LLC.

Which final returns are needed first?

EntityFinal return
PartnershipForm 1065, final box checked
S corporationForm 1120-S, final
C corporationForm 1120, final, and Form 966
Foreign-owned single-member LLCForm 5472 with pro forma Form 1120, final
EmployerFinal Forms 941 and 940, and Forms W-2

What about an EIN you never used?

If you obtained an EIN by mistake, or for a business that never started, write the same letter giving the reason, for example that the entity never began operating. No final return is needed if none was ever due. See how to get an EIN online.

What if you can't find the EIN?

Find it on old returns, bank records or IRS letters, or ask the IRS for a 147C letter confirming it. See lost EIN and the 147C letter.

Closing a business account?

We file the final returns, send the closing letter and confirm the IRS has closed the account.

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Questions people ask

Can I cancel my EIN?

No. The IRS never reuses EINs, but it will close the business account linked to the EIN.

How do I close my EIN account?

File all final returns, pay any tax, then write to the IRS with the legal name, EIN, address and reason for closing.

What if I got an EIN by mistake?

Write to the IRS explaining that the entity never operated, and ask it to close the account.

Can I reuse my EIN if I restart the business?

Yes, if it is the same entity. A new entity needs its own EIN.

Sources

Every fee, date and rule on this page was taken from these official and primary sources.

  1. IRS: Closing a business
  2. IRS: Canceling an EIN, closing your account
  3. IRS: Do you need a new EIN?

Rules and fees change. If you are reading this long after October 1, 2026, confirm the figures with the source before you rely on them.

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This guide is general information. It is not tax or legal advice for your situation.