You cannot truly cancel an EIN. Once the IRS assigns an Employer Identification Number to a business, that number belongs to the entity permanently and is never reissued. What you can do is ask the IRS to deactivate the number, which closes the business account so the agency stops expecting returns under it. To cancel an EIN number in the practical sense, you file every outstanding return, pay any tax owed, and mail a signed letter asking the IRS to close the account.
What to Put in the Deactivation Letter
There is no IRS form for this. You send a typed letter with enough information for the IRS to find the account and confirm you have authority to close it. Include:
- The legal business name exactly as it appeared on the original EIN application.
- The full nine-digit EIN.
- The business mailing address currently on file with the IRS.
- A copy of the original EIN Assignment Notice (Letter CP 575) if you still have it. If not, call the IRS Business and Specialty Tax Line at 800-829-4933 and ask for a replacement verification letter (Letter 147C).
- A brief reason, such as “the business was dissolved” or “the entity never began operations.”
An authorized person has to sign: the individual who originally applied for the EIN, a corporate officer, a partner, or someone with a valid Form 2848 power of attorney. Including the responsible party’s Social Security number or ITIN adds a layer of protection against unauthorized closure attempts.
Where to Mail It
The IRS accepts the letter at either address:
- Internal Revenue Service, MS 6055, Kansas City, MO 64108
- Internal Revenue Service, MS 6273, Ogden, UT 84201
The IRS does not usually send a confirmation, so keep proof of mailing. A certified mail receipt works.1Internal Revenue Service. If You No Longer Need Your EIN
File Every Outstanding Return First
The IRS will not deactivate your EIN until every required return has been filed and all tax, penalties, and interest have been paid.1Internal Revenue Service. If You No Longer Need Your EIN What you owe depends on how the business was organized.
Partnerships
File Form 1065 for the closing year. Check the “Final return” box near the top of page one and the “Final K-1” box on each Schedule K-1. The return is due by the 15th day of the third month after the partnership terminates.2Internal Revenue Service. Closing a Business3Internal Revenue Service. 2025 Instructions for Form 1065 U.S. Return of Partnership Income
C Corporations
File Form 1120 with the “Final return” box checked. The deadline is the 15th day of the fourth month after the corporation dissolves.4Internal Revenue Service. Instructions for Form 1120
S Corporations
File Form 1120-S with the “Final return” box checked and mark “Final K-1” on each Schedule K-1. The return is due by the 15th day of the third month after the corporation dissolves.5Internal Revenue Service. 2025 Instructions for Form 1120-S U.S. Income Tax Return for an S Corporation
Form 966 for Dissolving Corporations
Any corporation, C or S, that adopts a resolution or plan to dissolve must file Form 966 within 30 days of adopting the resolution. This is separate from the final income tax return and reports the dissolution plan itself. If the plan is later amended, file another Form 966 within 30 days of the amendment.6Office of the Law Revision Counsel. 26 U.S. Code 6043 – Liquidating, Etc., Transactions Exempt organizations and qualified subchapter S subsidiaries do not file Form 966, and neither do deemed liquidations such as those triggered by a Section 338 election.7Internal Revenue Service. Form 966 Corporate Dissolution or Liquidation
Final Payroll, W-2s, and 1099s
If the business had employees, pay all final wages and make your last federal tax deposits, then file Form 941 (or Form 944 if you were an annual filer) for the quarter in which final wages were paid, checking the box marking it a final return.2Internal Revenue Service. Closing a Business
W-2s go to employees and to the Social Security Administration. When a business closes permanently and files a final Form 941 or 944, the deadlines for furnishing and filing W-2s are accelerated ahead of the usual January 31 date; the specific dates appear in the General Instructions for Forms W-2 and W-3.8Internal Revenue Service. Instructions for Form 941
If you paid $600 or more to any independent contractor during the final year, issue Form 1099-NEC. The filing and furnishing deadline is January 31 of the following year; the IRS does not shorten or extend it for businesses that have closed.9Internal Revenue Service. Instructions for Forms 1099-MISC and 1099-NEC
Sale of Business Assets
If you sold a group of business assets as part of the closure rather than disposing of them piecemeal, both buyer and seller may need to file Form 8594 when goodwill or going concern value could attach to the assets. The form attaches to each party’s income tax return for the year of sale, and updated forms are required for any later year in which allocations change.10Internal Revenue Service. Instructions for Form 8594 Asset Acquisition Statement Under Section 1060 Capital gains and losses from asset sales during dissolution are reported on Schedule D attached to the final Form 1065, 1120, or 1120-S.2Internal Revenue Service. Closing a Business
Confirming the EIN Was Deactivated
The IRS won’t proactively tell you the account is closed. You can request an Entity transcript, which will show the current status, or call the Business and Specialty Tax Line at 800-829-4933 (TTY 800-829-4059), Monday through Friday, 7 a.m. to 7 p.m. local time, and ask a representative.11Internal Revenue Service. Employer Identification Number Allow several weeks for processing before you check. If notices about unfiled returns keep arriving after that, call the same number to follow up.
Records to Keep After Closing
Closing the business does not end your record-keeping obligations. Hold on to:
- Employment tax records for at least four years after the date the tax becomes due or is paid, whichever is later.
- Income tax records for at least three years from the date the return was filed or due, whichever is later.
- Records for unreported income exceeding 25% of gross income for at least six years.
- Records related to property or assets until the statute of limitations expires for the year you disposed of the property.
Keep records for any year you never filed a return indefinitely; the statute of limitations doesn’t run on an unfiled return.12Internal Revenue Service. How Long Should I Keep Records
State Filings Are Separate
Deactivating your EIN closes only the federal account. Most states require their own steps to wind down a business, which typically include filing articles of dissolution with the secretary of state, filing final state income and sales tax returns, closing state tax accounts, and canceling any business licenses or permits. Fees and procedures vary by state.2Internal Revenue Service. Closing a Business