Suppose you’re changing entities, thinking about closing your shop to a company or selling your business to another entity. In that case, you could consider canceling the current EIN or obtaining a new one. An EIN is the number assigned to employers that the IRS issues when your business is established. When your EIN is issued, it’s an enduring number that can never be used again for other companies. Here are some tips to consider about what you should do if you’re closing your business down or making significant changes to your ownership structures.
While you cannot change your EIN, you might be able to alter your EIN information through the IRS. Do you have a new company? Apply for an EIN online to start. If you already have an EIN registration with IRS, Here are the steps to change it:
Modify the business name for your company by sending a letter to IRS or by filling out the form for the type of business you operate.
Change the address by filling in form 8822-B.
Complete Form 8832 to alter the nature of the business and request the LLC structure.
Contact IRS IRS and/or visit the field offices in case of other significant modifications.
Cancel or Open EIN
If your company is ready to close, You may be thinking about what you can do to shut down EIN Accounts with IRS. You can’t remove your EIN, but it is possible to close the account at IRS. You’ll have to write an email to an IRS office and provide why you wish to shut down your tax-related account. You’ll have to include vital information about your company, including the company’s name, its structure, address and EIN.
If you’re thinking of making a significant change to your business and want to find out what you can do with your current EIN or would like to apply for an EIN or a new one, please get in touch with us.
Specific steps and guidelines inform the IRS of the proposed changes. In the event of changes, they can be made by filing the proper IRS forms. Specific changes, however, need to be made by writing letters to the IRS or closing your company.
What Should You Include In Your Letter?
An email to IRS seeking to close an account must be written on business letterhead and include the following information:
The Legal Title Of The Company Or Company
Example: My Own Company LLC
The Current Employment Identification Number (EIN)
The Company Or The Organization’s Complete Physical Address
3426 Company Boulevard.
Everywhere USA 12345
The Reason Why You Have Requested Your Account Be Shut Down
Start-ups and new businesses
If Possible, Attach A Copy Original EIN Note Of Assignment
It’s the email that you received when the first time you applied to get an EIN
Where To Mail Your Letter
If you’re closing your business account, mail your letter to the following address:
Internal Revenue Service
Cincinnati, Ohio 45999
If you’re an exempt business that isn’t protected by the group ruling or hasn’t filed an exemption return and has never sought an exemption formally, you can write to us:
Internal Revenue Service
ATTN: EO Entity
The Mail Stop is 6273
Ogden, UT 84201
Remember that the IRS cannot shut down your bank account until you’ve completed all tax returns.
Suppose you’re closing your existing account due to your company undergoing significant changes or beginning a new venture. In that case, applying for a brand-new EIN is extremely easy. Tax & Law Research Inc. has a simplified process for applying that’s easy and quick. Our 24-hour team of professionals is ready to answer your inquiries and help by filling out our quick Online Application Form. Begin your application by contacting us.
In Case You Don’t Receive Confirmation Within 45 Days.
Suppose you do not receive confirmation in the timeframe of 45 days. In that case, you may send or fax copies of that original document to the IRS a second time.
It should be sent to the address above, and add “Second Request” at the top (you could write it in your handwriting).
Does An EIN Become Invalid If A Business Shuts Down?
After the fiscal obligations are met, and the business is officially dissolved, one thing often missed will be closing your EIN company account at the IRS.
Many business owners believe that after all tax filings are made, the IRS will immediately cease or shut down an EIN; however, as the title suggests, a company’s EIN is never canceled or reassigned. It is only reused or repurposed. Regardless of whether the EIN was ever utilized, it is permanent. The IRS can’t remove EIN numbers. However, the business account associated with the EIN can be closed. If the EIN is required, later on, the EIN will remain with the corporate until the bank account has been shut down.
To close a company account with the IRS, an official letter must be sent to Internal Revenue Service, Cincinnati, OH 45999.
The letter should specify the reason for closing the account. It should also contain the Federal identification number, the full official name and address of the business, and its address for business. If a version of the EIN Assignment notice exists, include it in the letter. For those entities that are to be liable for business taxes or have been advised that tax returns for business have been due for filing, proper tax returns must be submitted before when the EIN account is closed.
Harvard Business Services strongly suggests that you seek advice from a qualified tax professional when closing a company. We invite you to contact us for assistance in closing your business. We’ll ensure all taxes are filed with the local, state and federal tax authorities.
I’m Not Shutting Down; I’m Just Organizing. Do I Require A New EIN?
The IRS will decide the final decision as to whether you require to change your EIN; however, in general, whenever a business changes its structure, it must alter EINs. Re-organization examples are:
- The process of changing from a company to another form of organization, such as one of the forms LLC and Limited Partnership, or vice reverse
- Incorporating into the new state, which results in the creation of a new state charter
- The merger of two corporations results in a brand-new corporation.
- Change from a sole proprietorship status to a partnership or entity such as a corporation, LLC or corporation.
- The process of changing a partnership from becoming a sole proprietor to another business entity such as a corporation, LLC or another.
- Partnerships change that result in the formation of a different partnership (i.e., one partner is out, and an additional partner is)
- Changes in ownership of the business that causes the initial EIN applicant not to have control of the company
Other than re-organizing the business, most other changes do not require a brand new EIN. Here are some examples of changes that don’t require changing EINs:
- The name change of your company
- Modifying a location or adding a new location
- Electing for taxation by an S corporation or deciding using form 832 Entity Classification Election to alter how an entity’s taxation is regulated
- A partnership or corporation declares bankruptcy
IRS Contact Information
If you have any concerns about or concerns about your EIN account, call the IRS by calling 800-829-4933. The hours are 7:00 am until 7:00 pm local time. If you’re located in Alaska or Hawaii, Please observe Pacific time.