If you need to cancel an EIN, you generally cannot erase or reuse the number: you can ask the IRS to close the business account associated with it. Send a signed letter stating the business’s legal name, EIN, mailing address, and reason for closure, after filing required returns and paying outstanding taxes.
What “Cancel an EIN” Means
An Employer Identification Number (EIN) is a federal tax identification number assigned by the IRS to identify a business or other entity. The IRS does not cancel an EIN in the sense of deleting it from its records or making it available for someone else. Instead, the IRS can close the business account connected to that number when the entity no longer needs to file federal tax returns or meet related tax obligations.
This distinction matters because an EIN may remain permanently associated with the entity even after its account is closed. If the same business later resumes operations, it may generally use its existing EIN rather than apply for another one. Whether a new EIN is required after a change in ownership or legal structure depends on the circumstances; do not assume that simply changing a business name means a new number is needed.
Closing the IRS account is also separate from dissolving a company under state law, ending a registration, cancelling a local license, or closing a bank account. A letter to the IRS handles only the federal business tax account. Other agencies or organizations may have their own closure requirements.
EIN Cancellation Letter Template
Use this general letter to request that the IRS close the business account associated with an EIN. Complete the blank lines, sign the letter, and keep a copy. Do not send original formation documents unless the IRS specifically requests them.
Business legal name: ____________________________________
Employer Identification Number: __________________________
Business mailing address: _______________________________
_______________________________________________________
Date: _________________________________________________
Internal Revenue Service
Subject: Request to close business account associated with EIN
To whom it may concern:
I am writing on behalf of ____________________________________, the business associated with the Employer Identification Number listed above. The business ceased operations on ____________________ and no longer needs its IRS business account because ________________________________________________.
Please close the business account associated with this EIN. I understand that the EIN itself remains assigned to the entity and is not erased or made available for reassignment.
All required federal tax returns have been filed, and any taxes owed have been paid, or the remaining filing or payment steps are described here: ________________________________________________.
Please send any correspondence about this request to the mailing address above. If you need additional information, I can be reached at ______________________________.
Sincerely,
Signature: _____________________________________________
Printed name: __________________________________________
Title or relationship to the business: ______________________
Telephone number: _____________________________________
Sample — fictional details:
Business legal name: North Pine Workshop LLC
EIN: 00-0000000
Reason: The fictional business stopped operating on June 30, 2026, and has completed its required federal filings and payments. The signer asks the IRS to close the associated business account. These details are illustrative, not a real business or EIN.
What to Include in the Letter
The IRS needs enough information to identify the correct account and understand what you are requesting. A concise letter is usually easier to process than a long explanation, but it should not leave out essential identifying details.
- Legal business name: Use the name associated with the EIN in IRS records. If the business used a different trade name, you can mention it as additional context.
- EIN: Check the number against the IRS notice that assigned it or a previously filed return. A transposed digit can delay the request.
- Business mailing address: Give a current address where the IRS can send correspondence, even if the business location has closed.
- Reason for closure: Briefly state that the entity ceased operations, was dissolved, or otherwise no longer needs its IRS business account. Use the reason that actually applies.
- Responsible person’s signature and contact details: Have an owner, officer, or other authorized representative sign and provide a way to respond if the IRS asks for clarification.
If available, include a copy of the EIN assignment notice, often called the CP 575 notice. A copy can help identify the account, but do not treat it as a substitute for accurate details in the letter. Keep the original notice and a complete copy of everything you send.
What to Do Before Requesting Closure
Closing an account does not remove earlier filing or payment duties. Before mailing a request, identify which federal returns the business was required to file and make sure required final returns are addressed. The type of return depends on the entity and its activities. For example, a business with employees may have employment tax filing responsibilities, while an entity subject to a different federal return has different obligations. Mark a return as final when the applicable return instructions call for it.
Check for unpaid tax, interest, penalties, or notices that still need attention. If a return is missing, the IRS may be unable to close the account until the filing is complete. Do not state that everything has been filed and paid if that is not true; describe what remains and resolve it through the appropriate filing or payment process.
Also confirm whether the entity has actually ended. A temporary pause, seasonal shutdown, or change in business activity does not necessarily mean the account should be closed. If the business continues to have a filing requirement, it may need to keep filing even if it had little or no activity. The requirements depend on the entity and its situation.
Where to Send the Letter and What Happens Next
The IRS’s published EIN cancellation instructions direct requests to Internal Revenue Service, Cincinnati, OH 45999. Mailing instructions can change, so confirm the current address and requirements on the IRS website before sending. Use a mailing method that gives you a record of delivery if you want proof that the letter arrived. That record shows delivery, not that the IRS approved or completed the request.
After mailing, keep a copy of the signed letter, any enclosure, and the delivery record with the business’s tax records. The IRS may contact you if it needs more information or if returns or payments remain outstanding. Do not assume the account is closed merely because the letter was delivered; continue to monitor IRS correspondence and comply with any applicable filing duties until the matter is resolved.
There is no need to send a new EIN application as part of a closure request. If you have never filed a return under the EIN, explain that clearly in the letter rather than inventing a filing history. The key is to request closure of the business account and provide enough information for the IRS to locate it.
Different Situations That Need Care
A sole proprietor who stops operating, a partnership that winds up, and a corporation that dissolves may all have different final-return obligations. The same basic letter can identify the request, but it does not determine which returns are due. For a business with employees, final payroll filings and other employer responsibilities may remain even after the last workday. An entity that continues to exist legally may also have filing obligations despite having stopped sales.
If the EIN was obtained by mistake and the business never began, the letter can say so and ask to close the associated account. Still, confirm whether any returns or notices are outstanding. If the EIN belongs to an entity that has changed its name, structure, or ownership, first determine whether the existing number should remain in use; a closure request is not a general method for correcting entity information.
Where the business has more than one responsible owner, make sure the person signing is authorized to act for it. If there is uncertainty about dissolution, ownership changes, or final tax filings, ask a qualified tax or legal professional for advice specific to the situation.
Common Mistakes to Avoid
- Calling the request a deletion: Ask the IRS to close the business account associated with the EIN, not to erase the number.
- Skipping final filings: Stopping business activity does not automatically satisfy tax-return requirements. Determine and complete the required final filings.
- Using a different name without explanation: Start with the legal name tied to the EIN and explain any trade name or name change.
- Sending originals: Keep original notices and records unless the IRS specifically asks for an original document.
- Assuming one letter closes everything: The IRS request does not itself dissolve a state entity, cancel licenses, or end accounts with other agencies.
- Ignoring later mail: A notice may ask for a return, payment, or further information. Respond by the stated deadline or seek appropriate assistance.
Closing an Account Versus Other Options
If the business is still operating, the right step may be to update records rather than request closure. A legal name change, address change, or change in responsible party may have its own IRS reporting process. Those changes do not automatically mean the EIN is cancelled or that a different EIN is needed.
If the business has stopped temporarily, consider whether it still has filing obligations before asking to close the account. If it has permanently ceased operations, the closure request can be one part of winding down, alongside final returns and any applicable state or local steps. If the EIN was never used, state that fact and ask the IRS to close the account rather than applying for another number. The right option depends on the entity’s status and obligations, not simply on whether it currently has revenue.
Frequently Asked Questions
Can I cancel or delete an EIN?
No. The IRS does not erase an assigned EIN or make it available to another business. You can ask the IRS to close the business account associated with the number when the entity no longer needs it.
Does the IRS charge a fee to close an EIN account?
The IRS does not charge a fee for sending a letter to request closure. Separate costs may apply to other steps in winding down a business, such as professional services or state-level filings.
Can I use the EIN again if I reopen the business?
An EIN remains assigned to the entity and generally is not reused by a different entity. If the same entity resumes operations, it may be able to use its existing EIN. Changes in ownership or legal structure can affect whether a new number is required, so confirm the rule for that specific change.
Do I have to file a final tax return before mailing the letter?
You should complete required returns and pay outstanding taxes before requesting account closure. The particular final returns depend on the business’s structure and activities; a closure letter does not replace them.
What if I received an EIN but never used it?
Write to the IRS with the legal name, EIN, address, and a clear statement that the number was never used and the account should be closed. Check whether the IRS expects any filing before assuming there are no remaining obligations.
Does an EIN cancellation letter dissolve my LLC or corporation?
No. It requests closure of the federal business tax account only. State dissolution, registrations, licenses, and other accounts have separate procedures and may need to be handled independently.