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okay in this video i wanted to talk about the procedures for canceling an ein with the irs so an ein is an employer identification number it's effectively the tax id number that's assigned to a business so it's a sole proprietorship business or business entity it can even be assigned to trusts estates joint ventures charitable organizations effectively it's the tax id number for anything that's not let's say an individual person okay now so just to start with um you can't actually cancel your ein so once the ein is assigned to a business entity or again like a trust a state charitable organization sole proprietorship joint venture whatever it is once that ein is issued it remains attached to that entity name or business name and it's never reused or recycled and so for those reasons you can't actually cancel it because again it's never going to come up again so the only way you can really cancel it or one of two ways right and again cancel is not the best term because it's not closed forever by canceling the ein you're basically just letting the irs know that they should not expect any additional filings beyond some certain date so the most common way an ein a business account is closed out is when you file a final tax return so in this example here we have john and jack have a delaware llc that's a partnership so the llc is a partnership needs to file a form 1065 every year so they formed this partnership they filed 1065 for 2018 2019 and 2020 and then in 2021 they decided they were going to close the business down all right and then close out the llc so on december 15th they filed the articles of dissolution to dissolve the llc so because the entity existed for 2021 it still has to file a tax return for so on the form 1065 for the 2021 tax year they check the final box on page one of that form 1065 and that lets the irs know that hey this entity is closed you should not expect to receive any additional filings beyond this year and that's important because the irs if they don't get tax returns from you every year when they think your business is still operating they send you letters right they'll send you irs notices that say hey look we think you're still operating why didn't you file a 1065 for this year and so that's why it's really important to make sure that when you file a final return make sure it is marked final okay so now aside from this example what do you do if you had an ein that was genuinely never used so if you apply for an ein and never used it so you you never open any bank accounts you never filed an initial tax return you never even gave this ein out to vendors or customers...