To cancel an EIN with the IRS, mail a signed letter asking the agency to close the business account tied to that number. The IRS will not process the request until every required return has been filed and every tax owed has been paid, so the letter is the last step in a longer wind-down, not the first.
Finish These Before the IRS Will Close the Account
The IRS will not close your business account until all necessary returns have been filed and all taxes have been paid.1Internal Revenue Service. Closing a Business – Section: Cancel Your EIN and Close Your IRS Business Account Skip any of it and your cancellation request stalls.
Final Income Tax Returns
File a final version of every return the business normally files. Corporations file Form 1120 with the “Final return” box checked in Item E, and a dissolved corporation generally must file that return by the 15th day of the fourth month after dissolution.2Internal Revenue Service. Instructions for Form 1120 (2025) US Corporation Income Tax Return Partnerships file a final Form 1065. Sole proprietors report final business income on Schedule C of their personal Form 1040.
A corporation that adopts a plan of dissolution or liquidation also files Form 966 to report the resolution.3Internal Revenue Service. About Form 966, Corporate Dissolution or Liquidation If you paid any independent contractor $600 or more during the calendar year you close, you still owe them a Form 1099-NEC.4Internal Revenue Service. What Business Owners Need to Do When Closing Their Doors for Good
Employee and Payroll Filings
If you had employees, file a final Form 941 by checking the box on line 17 and entering the last date you paid wages. Attach a statement listing the name and address of the person who will keep the payroll records going forward.5Internal Revenue Service. Instructions for Form 941 File a final Form 940 as well, checking box d to indicate you have gone out of business or stopped paying wages, with the same record-keeper statement attached.6Internal Revenue Service. Instructions for Form 940 (2025) Final W-2s go to employees by the standard deadline following your last year of operations.7Internal Revenue Service. Topic No 752, Filing Forms W-2 and W-3
What to Put in the Cancellation Letter
The IRS requires a written letter. There is no online form or portal. Keep it short and include:
- The complete legal name of the business as it appears in IRS records.
- The nine-digit EIN you want deactivated.
- The business address on file with the IRS.
- The reason for closing: operations ceased, legal structure changed, or the EIN was never used.
- A copy of the EIN assignment notice (CP 575 or 147C), if you still have it.
A few clear sentences covering those items is enough. If the entity has no employees and will file no further returns under that number, say so.1Internal Revenue Service. Closing a Business – Section: Cancel Your EIN and Close Your IRS Business Account Attaching the original assignment notice helps the IRS match your request to the right account, though it is not required.8Internal Revenue Service. If You No Longer Need Your EIN
Where to Mail It
Most filers mail the letter to one of two IRS addresses:8Internal Revenue Service. If You No Longer Need Your EIN
- Internal Revenue Service, MS 6055, Kansas City, MO 64108
- Internal Revenue Service, MS 6273, Ogden, UT 84201
Tax-exempt organizations send the letter to Internal Revenue Service, Attn: EO Entity, Mail Stop 6273, Ogden, UT 84201, or fax it to 855-214-7520.
If you are closing the business entirely rather than deactivating an unused number, the IRS Closing a Business page directs you to mail the cancellation letter and a copy of the EIN assignment notice to Internal Revenue Service, Cincinnati, OH 45999.1Internal Revenue Service. Closing a Business – Section: Cancel Your EIN and Close Your IRS Business Account When in doubt, use the addresses on the “If You No Longer Need Your EIN” page, which is the most specific guidance the IRS publishes for deactivation.
What Happens After the Letter Goes Out
The IRS does not send formal confirmation. The account status is updated internally, and processing times vary. To verify later, call the IRS Business and Specialty Tax Line at 800-829-4933.
Once deactivated, the EIN is gone. It stays permanently tied to the original entity and cannot be transferred, reused for a different venture, or reactivated.1Internal Revenue Service. Closing a Business – Section: Cancel Your EIN and Close Your IRS Business Account A new business needs a new EIN.
State and Local Accounts Are Separate
Canceling the federal EIN does not close state or local obligations. Most states require their own wind-down: dissolution or cancellation paperwork with the Secretary of State for corporations, LLCs, and partnerships; closure of income tax, sales tax, withholding, and unemployment insurance accounts with the state department of revenue; and separate cancellation of every license or permit with whichever agency issued it. Procedures vary, so check with your Secretary of State and state tax agency for the forms that apply to your entity type. Ignoring these can leave you with ongoing state assessments and penalties even after the IRS side is closed.
How Long to Keep the Records
Hold onto business records after the account is closed. The general IRS guidance:9Internal Revenue Service. How Long Should I Keep Records
- At least 3 years for most business income and expense records, from the date the return was filed or its due date, whichever is later.
- At least 4 years for employment tax records, from the date the tax was due or paid, whichever is later.
- 6 years if you failed to report income exceeding 25% of gross income on a return.
- 7 years if you claimed a deduction for bad debt or worthless securities.
- Indefinitely for any year you did not file a return.
Keep a copy of the cancellation letter and the original EIN assignment notice with those records. If a question comes up years later, everything sits in one place.