Sometimes, clients wonder about canceling an EIN that has been assigned to a company or entity. Unfortunately, this is not possible. Once the IRS assigns a number to a business or other organization, the assignment is permanent and follows that organization for as long as it exists. There are some situations where a company can reincorporate or restructure in ways the IRS recognizes as the end of one entity and the beginning of another, though. Under those circumstances, the old organization’s Tax ID will no longer be usable, and a new one will have to be issued to the “new” entity.
What if the EIN Will Never Be Used? Or Never Be Used Again?
The IRS recognizes that sometimes, an organization receives an EIN and then dissolves before it needs to conduct business with it. This can happen for a variety of reasons, including a loss of investors or simply a decision to backtrack and move forward with a different company structure. From the standpoint of the federal government, though, it does not matter if a number has never been used, it is still an active record and cannot be canceled.
You can, however, close your account with the IRS, which notifies them that the EIN is no longer in use because your business has closed. You will still owe any outstanding business taxes, but it does ensure the record is moved to inactive status.
What to do if You Need a New EIN
If you have started a new business or you recently received a new charter for your company because you reincorporated, it’s time to file for a new EIN online at IRS-EIN-Tax-ID.com. That way, you can be sure your records will be up to date and your organization will be able to pay its taxes accurately. The steps are simple.
- Navigate to the site
- Fill out the form for the proper entity type
- Complete payment
- Get notification of your EIN via email
If you have questions about completing the process or you need more information about unused EINs, you can also contact IRS EIN Tax ID Filing Service today.