How to Cancel / Close an EIN With the IRS
You cannot erase an EIN. Once assigned, it remains the business entity's permanent federal taxpayer ID. What the IRS can do is deactivate the EIN and close the associated IRS business account after required returns are filed and taxes owed are paid.
Can you cancel an EIN?
The IRS cannot cancel or erase an EIN, but it can deactivate it. For a normal business entity, send a letter containing the EIN, legal name, address, EIN assignment notice if available, and the reason for deactivation. Current IRS guidance lists Kansas City, MO 64108 (MS 6055) and Ogden, UT 84201 (MS 6273) as mailing options. Required returns and taxes must be handled first.
What “Cancel EIN” Actually Means
The IRS now describes this as deactivating your EIN. The number itself stays permanently associated with the entity. Deactivation closes the IRS business account; it does not erase the entity's federal tax history and it does not dissolve the LLC with the state.
Important correction from the older page: do not rely on a fixed “45-day” processing promise. Current IRS public guidance explains what to send and where to send it, but does not publish a guaranteed deactivation turnaround on the dedicated EIN page.
EIN Closure Readiness Checker
Before mailing anything, use this page-specific tool to identify whether you appear ready to request deactivation or whether federal filing/tax work still comes first.
What to Finish Before You Ask the IRS to Deactivate the EIN
The IRS says it cannot close the business account until all necessary returns are filed and taxes owed are paid. What “final return” means depends on the federal tax classification of the business.
- File the final federal return that applies to the business.
Partnerships generally file Form 1065; corporations use the applicable corporate return; a disregarded single-member LLC generally reports through its owner's return unless another filing requirement applies. - Finish employment-tax obligations if you had employees.
Final Forms 941 or 944, Form 940, W-2/W-3 reporting and final deposits may apply. - Pay federal taxes that are due.
Deactivating an EIN does not erase an existing tax liability. - Report contractor payments when required.
Closing a business does not remove final information-reporting obligations. - Keep the records required for prior tax periods.
EIN deactivation is not permission to discard tax, payroll or property records prematurely.
EIN Deactivation vs. LLC Dissolution
These are separate systems. The IRS handles the federal tax account; your state handles the LLC's legal existence and state obligations.
Deactivate EIN business account
- Permanent EIN remains in IRS records
- Federal final-return/tax rules apply
- Letter goes to the IRS
- Does not dissolve the LLC under state law
Dissolve / terminate the LLC
- State-specific filing procedure
- May involve final state tax/compliance steps
- Ends or terminates the entity under state law
- Does not automatically deactivate the federal EIN account
How to Deactivate an EIN: Step by Step
- Confirm all federal filing and payment requirements are handled.
Do this before requesting deactivation. - Prepare a written letter.
Include the entity's EIN, complete legal name, address and reason for deactivation. Include the EIN assignment notice if you still have it. - Mail it to a current IRS deactivation address.
Current dedicated IRS guidance lists: Internal Revenue Service, MS 6055, Kansas City, MO 64108; or Internal Revenue Service, MS 6273, Ogden, UT 84201. - Keep a complete copy and mailing evidence.
Using a trackable mailing method is a practical recordkeeping step even though the IRS page does not require one specific postal service. - Keep prior business records after closure.
The IRS record-retention rules still apply after the EIN account is deactivated.
IRS EIN Deactivation Letter Template
The IRS does not require the extra certifications that the older template inserted. The safest template is therefore short and limited to the information the IRS specifically requests.
Address option: the current dedicated IRS page also lists Internal Revenue Service, MS 6273, Ogden, UT 84201. Exempt organizations have separate instructions; do not use this generic business template for an exempt organization without checking the IRS exempt-organization rules.
When Do You Need a New EIN Instead?
Do not assume every ownership or tax change requires closing the old EIN. IRS rules differ by entity type.
| Situation | General IRS direction | Important qualifier |
|---|---|---|
| Business name or address changes | Usually keep EIN | The IRS says a name or address change by itself does not generally require a new EIN. |
| LLC changes tax election to corporation or S corporation | Keep EIN | Current IRS LLC guidance says the tax election alone does not require a new EIN. |
| Existing LLC is terminated and a new corporation or partnership is formed | New EIN | The new entity/structure generally needs a new EIN. |
| Single-member LLC becomes subject to employment or certain excise-tax filing requirements | New EIN may be required | Follow the IRS LLC-specific EIN rules for the exact facts. |
| Ownership changes | Fact dependent | The answer depends on entity type and whether the change creates or terminates an entity for federal tax purposes. |
Do not use a generic “ownership changed = new EIN” rule. The IRS publishes separate rules for sole proprietors, corporations, partnerships and LLCs. Check the entity-specific rule before applying for another EIN.
What Happens After EIN Deactivation?
The EIN itself remains the entity's permanent federal taxpayer identification number. Deactivation closes the associated IRS business account; it does not erase prior returns, eliminate tax debts, dissolve the LLC with the state, or cancel state/local licenses and accounts.
Starting a New LLC Later?
Closing an EIN does not mean you need another formation service now. But if you later create a genuinely new LLC and want formation/registered-agent help, Northwest Registered Agent is one service LLC School works with. Verify the current offer at checkout.
See Northwest's Current Offer →Disclosure: LLC School may earn a commission if you use this link, at no extra cost to you. This is optional and unrelated to the IRS EIN-deactivation process.
IRS Verification Notes
This revision uses the IRS's current dedicated EIN-deactivation page for the mailing instructions, plus the IRS Closing a Business guidance for final returns, employment taxes, tax payment and records. The IRS's current “When to get a new EIN” page governs the entity-specific new-EIN section.
Ahmad Adil
This guide is educational and explains current IRS administrative guidance. Tax consequences can vary by entity classification, employees, elections, assets and outstanding liabilities.
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