Are you wondering how you can cancel your EIN in the USA? If YES, here is a detailed process of how you can cancel your EIN in 2023. If you are changing business structure, considering closing up shop for a business or retiring and selling your corporation to another entity, you may be wondering how to cancel an existing EIN and/or getting a new one.
The EIN is the employer identification number that is issued by the IRS when your company is first set up. Once your EIN is issued, it is a permanent number and will never be reused for any other entity. There is no cost to apply for an EIN. An EIN cannot be reused or reassigned to another organization. Even if it is never used to file federal tax returns or other government documents, the IRS cannot cancel an EIN.
However, if you decide you no longer need an EIN after you have received it, you can request that the IRS close your account. This may be necessary if the business was never in operation, for example. You can still use the EIN at a later date if necessary, as it will always belong to that business. The number simply becomes “inactive.”
You can write to the IRS to close your account. You are expected to indicate the reason you are closing the account and you’ll need to include a copy of the EIN Assignment Notice you received when your EIN was issued. You should also indicate the legal name of the business, the address and Employer Identification Number.
Meanwhile, the rules regarding EINs and tax-exempt organizations are much the same for closing the account of an EIN that was never used. You are still expected to send a letter requesting the closing for your account. In the letter you will still have to state the reason you want to close the account. Include a copy of the EIN Assignment Notice or list the complete legal name of the organization, the EIN and the entity’s mailing address.
Note that the IRS only issues EIN/TIN to certain individuals, businesses and tax-exempt organizations for federal taxes. You will have to check with your state employer identification number and the process for cancelling or inactivating a state-issued EIN.
4 Steps to Cancel an EIN in the United States
Cancelling/deactivating an EIN with the IRS is technically called “Closing a Business Account”, since EINs are never really cancelled. They just stop being used. However, if you owe taxes for this tax year, you will have to file them first before mailing in the Cancellation Letter. Also, you don’t need to wait for an EIN to be closed before getting a new EIN. Nonetheless, the steps to take include;
Table of Content
Download EIN Cancellation Letter
You can start by downloading any free Cancel EIN Letter in either PDF or Microsoft Word format. They are both the exact same form.
Mail Cancellation Letter to the IRS
The Entity Department at the IRS doesn’t have a fax number. The only way to send your Cancel EIN Letter to the IRS is by mail. Mail your EIN Cancellation letter to the IRS at:
Internal Revenue Service
Mail Stop 343
Cincinnati, OH 45999-0023
Attn: BMF Entity Department
(BMF stands for “business master file”)
However, if you have your original EIN Confirmation Letter, please make a copy and include with the letter. Also note that the IRS will send a letter confirming their receipt of the updated information within 45 days or less.
Request confirmation if not received in 45 days
If you do not receive the confirmation letter within 45 days, you can either mail or fax a copy of the original letter to the IRS again. Send it to the same address and write “Second Request” somewhere near the top (you can just handwrite it).
If you have questions about your EIN account, you can contact the IRS at 800-829-4933. Their hours are 7:00am to 7:00pm local time. If you are in Alaska or Hawaii, please follow Pacific Time. Also note that calling the IRS can usually lead to hold times that are 15 to 30 minutes. It is advisable you call as early as possible for fastest service.
IRS Phone prompts:
- Press option 1 (for English)
- Then option 1 (for Employer Identification Number information)
- Then option 3 (for other assistance)
Information for Exempt Organizations
If you applied for an EIN for an exempt organization that (1) never applied for formal exemption, (2) is not covered in a group ruling, or (3) never filed an information return, send a letter requesting the closing of your account to;
Internal Revenue Service
Attn: EO Entity
Mail Stop 6273
Ogden, UT 84201
(Or you may fax it to (855) 214-7520).
Remember to clearly state the reason you wish to close your account. If you have a copy of the EIN Assignment Notice that was issued when your EIN was assigned, you should include that when you write. Otherwise, be sure to include the complete legal name of the entity, the EIN, and the mailing address.
What to Include in Your letter
A letter to the IRS requesting an account closing should be written on business letterhead and include this information:
- The complete legal name of your business or organization (Example: My Own Company LLC)
- The existing Employer Identification Number (Example: 12-3456789)
- The business or organization’s full physical address (3426 Company Blvd, Anywhere USA 12345)
- The reason you are requesting your account be closed (Retirement, Dissolution, Starting a new business)
- When possible attach a copy of the original EIN Assignment Notice. This is the notification you received when you first applied for an EIN
One of the first things to do when starting a new business is obtaining the proper business registration and tax-filing status. Most organizations must obtain an EIN or Employer Identification Number. However, if for any reason you decide to close your EIN, keep in mind that the IRS cannot close your account until you have filled all the necessary tax returns. If you’re closing an existing account because your business is undergoing major changes or you’re starting a new business, applying for a new EIN is incredibly simple.