To cancel an EIN with the IRS, you file every outstanding return for the business, pay any tax still owed, and then mail the agency a letter asking it to close the business account tied to that number. One thing to know up front: the IRS never actually deletes an EIN. The nine-digit number stays permanently attached to the entity that received it and will never be reassigned to another business. What the letter does is deactivate the tax account, so the IRS stops expecting returns under that number.
File Every Required Return Before You Ask
The IRS will not close the account while anything is outstanding. This is where most cancellations stall, because the forms depend on how the business was structured.
- Sole proprietors file Schedule C with Form 1040 for the final year, plus Schedule SE if net self-employment earnings were $400 or more.
- C corporations file Form 1120 and check the “final return” box at the top of the first page. If the corporation adopted a resolution to dissolve or liquidate stock, file Form 966 as well.
- S corporations file Form 1120-S, check the “final return” box, and check the “final K-1” box on every Schedule K-1. Form 966 is also required if a dissolution plan was adopted.
- Partnerships file Form 1065, check the “final return” box, and check the “final K-1” box on each partner’s Schedule K-1.
Capital gains and losses go on the appropriate Schedule D for the return. Skip the final return and the IRS treats the account as active, sending automated delinquency notices for every unfiled year going forward.
Employment Taxes if You Had Employees
If wages were paid during the final year, more filings come due. File Form 941 (or Form 944 if that was your assigned schedule) for the quarter of the final wage payment. Check the box on line 17 of Form 941 marking it as your final return, enter the date wages were last paid, and attach a statement with the name and address of whoever will keep the payroll records going forward. File Form 940 for the calendar year of final wages and check box “d.”
Give W-2s to every employee by the due date of your final Form 941 or 944, then send copies to the Social Security Administration with Form W-3. If employees received tips, file Form 8027.
One thing closing the account will not do: erase personal exposure under the Trust Fund Recovery Penalty. If you withheld Social Security, Medicare, or income taxes from paychecks and never deposited the funds, the IRS can assess that penalty against anyone personally responsible for collecting and paying the tax, and deactivating the EIN does not affect it.
Contractors and Asset Sales
Any independent contractor paid $600 or more during the final calendar year needs a Form 1099-NEC. Both the copy to the contractor and the filing with the IRS are due January 31 of the following year, no matter when in the year you shut down.
Selling business property triggers Form 4797 for sales of depreciable or real property. Selling the business as a going concern means both you and the buyer file Form 8594 to allocate the purchase price across the transferred assets. Property whose business use dropped to 50% or less, including Section 179 property that stops being used in a business context because the business closed, also gets reported on Form 4797 for depreciation recapture.
What the Cancellation Letter Must Say
There is no IRS form for this. You write a letter, and the IRS requires four things in it:
- The complete legal name of the entity, exactly as it appeared on the original EIN application, including spelling and punctuation.
- The full nine-digit EIN.
- The current business mailing address for any follow-up correspondence.
- A brief reason for closing, such as “the business never commenced operations” or “the corporation was formally dissolved on [date].”
If you still have Notice CP 575, the letter the IRS sent when it originally assigned the EIN, include a copy. That notice carries the exact name and address on file, which helps the agency match the request without delays.
If You’ve Lost the EIN or the CP 575
You can still close the account without the original notice, but you do need the number itself. Old business tax returns, the bank where the business account was opened, or any state or local license application where the EIN was listed will usually have it. If none of those work, call the IRS Business & Specialty Tax Line at 800-829-4933, Monday through Friday, 7 a.m. to 7 p.m. local time. Staff will verify your identity and read the number back over the phone.
Having Someone Else Handle It
An accountant or attorney can submit the closure on your behalf, but the IRS generally needs a signed Form 2848 (Power of Attorney and Declaration of Representative) on file first. That form lets a representative sign documents and receive confidential tax information for the specific matters listed.
Where to Send the Letter
The IRS gives two mailing addresses for EIN deactivation. Either one works:
- Internal Revenue Service, MS 6055, Kansas City, MO 64108
- Internal Revenue Service, MS 6273, Ogden, UT 84201
Tax-exempt organizations can also fax the request to 855-214-7520, directed to the Ogden office (Attn: EO Entity, Mail Stop 6273). For general business EINs, mail is the only option.
Send it certified, with return receipt. The IRS does not reliably send a formal confirmation that it processed the closure. The certified mail receipt may be your only proof the request was submitted, and it matters if notices later show up for a business you thought was closed.
What Happens After You Submit
Processing runs several weeks at minimum, longer when the IRS is backlogged. Once processed, the account is marked inactive and filing reminders should stop. If notices keep arriving after a reasonable window, call 800-829-4933 to confirm the account status.
The EIN itself stays permanently associated with the entity. You cannot transfer it to a new business or have it reassigned. If you later restart the same business entity, you use the same EIN and contact the IRS to reactivate the account. A different entity means applying for a new EIN from scratch.
Records You Still Need to Keep
Closing the account does not end your record-keeping obligation. The IRS ties retention to the statute of limitations on each underlying return, not to the deactivation date.
- Three years from the filing date if all returns were filed accurately and completely.
- Six years if gross income was underreported by more than 25%.
- Seven years if you claimed a deduction for worthless securities or bad debt.
- Four years for employment tax records, measured from the date the tax was due or paid, whichever is later.
- Indefinitely if a return was never filed or was fraudulent.
Records for business property (depreciation schedules, purchase documents, improvement receipts) should stay until the statute of limitations expires for the year the property was disposed of. A safe practical rule is seven years after the final return, and longer for property records or any year that’s even questionable.
The State Side Is Separate
Closing the EIN account with the IRS has no effect at the state level. If the business is registered as an LLC, corporation, or other formal entity with the secretary of state, you file articles of dissolution (called a certificate of cancellation for LLCs in some states) with that office as a separate step. Dissolution fees typically run from nothing up to around $60, depending on the state.
Most states also require you to close state tax accounts, including sales tax permits and state employer withholding accounts. Notification is often expected within 30 to 60 days of the last taxable transaction, and final state returns are usually required as well. Some states demand a tax clearance certificate before accepting a dissolution filing, confirming there are no outstanding state taxes. Skip the state side and you can stay on the hook for annual report fees, franchise taxes, or minimum tax payments years after you thought the business was done.