Closing a business often involves a series of administrative steps, and one crucial aspect is canceling your Employer Identification Number (EIN) with the IRS. An EIN is a unique tax identification number used by businesses for tax purposes. If your business has ceased operations, been sold, or undergone a change in legal structure, it’s essential to notify the IRS to avoid potential issues related to tax filings and compliance. This article provides 14 sample letters you can adapt to formally request the cancellation of your EIN, ensuring a smooth and compliant closure process. Remember to consult with a tax professional for personalized advice tailored to your specific situation.
These sample letters cover a range of scenarios, including business closure, sale of business, change in business structure (e.g., from a partnership to a sole proprietorship), and other reasons for EIN cancellation. Each template is designed to be clear, concise, and provide all the necessary information the IRS requires to process your request. Before sending, carefully review each letter and customize it with your specific business details, including your EIN, business name, address, and the reason for cancellation. Using these templates will help you streamline the cancellation process and ensure you meet all IRS requirements.
Sample Letters to IRS to Cancel EIN
Sample Letter 1: Business Closure
[Your Business Name]
[Your Business Address]
[City, State, Zip Code]
[Date]
Internal Revenue Service
EIN Operation
Cincinnati, OH 45999
Subject: Request to Cancel Employer Identification Number
Dear Sir/Madam,
This letter serves as notification that [Your Business Name], EIN: [Your EIN], has ceased business operations as of [Date of Closure]. We are therefore requesting that the assigned Employer Identification Number be canceled.
The final tax return will be filed for the period ending [Date of Final Tax Return].
Sincerely,
[Your Name]
[Your Title]
Sample Letter 2: Sale of Business
[Your Business Name]
[Your Business Address]
[City, State, Zip Code]
[Date]
Internal Revenue Service
EIN Operation
Cincinnati, OH 45999
Subject: Request to Cancel Employer Identification Number Due to Sale
Dear Sir/Madam,
Please be advised that [Your Business Name], EIN: [Your EIN], has been sold to [New Owner’s Name/Business Name], effective [Date of Sale]. We are requesting the cancellation of this Employer Identification Number.
The final tax return will be filed for the period ending [Date of Final Tax Return].
Sincerely,
[Your Name]
[Your Title]
Sample Letter 3: Change in Business Structure (Partnership to Sole Proprietorship)
[Your Business Name]
[Your Business Address]
[City, State, Zip Code]
[Date]
Internal Revenue Service
EIN Operation
Cincinnati, OH 45999
Subject: Request to Cancel Employer Identification Number Due to Change in Business Structure
Dear Sir/Madam,
This letter is to inform you that the partnership, [Your Business Name], EIN: [Your EIN], has been dissolved and will now operate as a sole proprietorship under the name [Your Name], effective [Date of Change]. We request the cancellation of the EIN for the former partnership.
The final tax return for the partnership will be filed for the period ending [Date of Final Tax Return].
Sincerely,
[Your Name]
[Your Title]
Sample Letter 4: Company Merger
[Your Business Name]
[Your Business Address]
[City, State, Zip Code]
[Date]
Internal Revenue Service
EIN Operation
Cincinnati, OH 45999
Subject: Request to Cancel Employer Identification Number Due to Merger
Dear Sir/Madam,
Please be advised that [Your Business Name], EIN: [Your EIN], has merged with [Merging Company’s Name], effective [Date of Merger]. The surviving entity is [Surviving Company’s Name], EIN: [Surviving Company’s EIN]. We are requesting the cancellation of this Employer Identification Number.
The final tax return will be filed for the period ending [Date of Final Tax Return].
Sincerely,
[Your Name]
[Your Title]
Sample Letter 5: Bankruptcy
[Your Business Name]
[Your Business Address]
[City, State, Zip Code]
[Date]
Internal Revenue Service
EIN Operation
Cincinnati, OH 45999
Subject: Request to Cancel Employer Identification Number Due to Bankruptcy
Dear Sir/Madam,
This letter serves to inform you that [Your Business Name], EIN: [Your EIN], has filed for bankruptcy under Chapter [Chapter Number], effective [Date of Filing]. As a result, we are requesting the cancellation of the EIN.
The final tax return will be filed for the period ending [Date of Final Tax Return].
Sincerely,
[Your Name]
[Your Title]
Sample Letter 6: Liquidation
[Your Business Name]
[Your Business Address]
[City, State, Zip Code]
[Date]
Internal Revenue Service
EIN Operation
Cincinnati, OH 45999
Subject: Request to Cancel Employer Identification Number Due to Liquidation
Dear Sir/Madam,
Please be advised that [Your Business Name], EIN: [Your EIN], is undergoing liquidation and will cease operations on [Date of Liquidation]. We request that the assigned Employer Identification Number be canceled.
The final tax return will be filed for the period ending [Date of Final Tax Return].
Sincerely,
[Your Name]
[Your Title]
Sample Letter 7: Transfer of Ownership
[Your Business Name]
[Your Business Address]
[City, State, Zip Code]
[Date]
Internal Revenue Service
EIN Operation
Cincinnati, OH 45999
Subject: Request to Cancel Employer Identification Number Due to Transfer of Ownership
Dear Sir/Madam,
This letter is to notify you that ownership of [Your Business Name], EIN: [Your EIN], has been transferred to [New Owner’s Name], effective [Date of Transfer]. We are requesting the cancellation of the EIN.
The final tax return will be filed for the period ending [Date of Final Tax Return].
Sincerely,
[Your Name]
[Your Title]
Sample Letter 8: Dissolution of Partnership
[Your Business Name]
[Your Business Address]
[City, State, Zip Code]
[Date]
Internal Revenue Service
EIN Operation
Cincinnati, OH 45999
Subject: Request to Cancel Employer Identification Number Due to Dissolution of Partnership
Dear Sir/Madam,
This letter is to inform you that the partnership [Your Business Name], EIN: [Your EIN], has been formally dissolved as of [Date of Dissolution]. We request the cancellation of the EIN.
The final tax return will be filed for the period ending [Date of Final Tax Return].
Sincerely,
[Your Name]
[Your Title]
Sample Letter 9: Reorganization
[Your Business Name]
[Your Business Address]
[City, State, Zip Code]
[Date]
Internal Revenue Service
EIN Operation
Cincinnati, OH 45999
Subject: Request to Cancel Employer Identification Number Due to Reorganization
Dear Sir/Madam,
Please be advised that [Your Business Name], EIN: [Your EIN], has undergone a reorganization effective [Date of Reorganization]. The reorganized entity will operate under the name [New Business Name], EIN: [New Business EIN]. We are requesting cancellation of the old EIN.
The final tax return for the old entity will be filed for the period ending [Date of Final Tax Return].
Sincerely,
[Your Name]
[Your Title]
Sample Letter 10: Change to Sole Proprietorship (No EIN Required)
[Your Business Name]
[Your Business Address]
[City, State, Zip Code]
[Date]
Internal Revenue Service
EIN Operation
Cincinnati, OH 45999
Subject: Request to Cancel Employer Identification Number – Changing to Sole Proprietorship (No EIN Required)
Dear Sir/Madam,
This letter serves as notification that [Your Business Name], EIN: [Your EIN], is transitioning to a sole proprietorship under the name [Your Name], effective [Date of Change]. As a sole proprietorship without employees, an EIN is no longer required. We are requesting that the assigned Employer Identification Number be canceled.
The final tax return will be filed for the period ending [Date of Final Tax Return].
Sincerely,
[Your Name]
[Your Title]
Sample Letter 11: Involuntary Dissolution
[Your Business Name]
[Your Business Address]
[City, State, Zip Code]
[Date]
Internal Revenue Service
EIN Operation
Cincinnati, OH 45999
Subject: Request to Cancel Employer Identification Number Due to Involuntary Dissolution
Dear Sir/Madam,
This letter is to inform you that [Your Business Name], EIN: [Your EIN], has been involuntarily dissolved by the state of [State Name], effective [Date of Dissolution]. We request the cancellation of the EIN.
The final tax return will be filed for the period ending [Date of Final Tax Return].
Sincerely,
[Your Name]
[Your Title]
Sample Letter 12: Abandonment of Business
[Your Business Name]
[Your Business Address]
[City, State, Zip Code]
[Date]
Internal Revenue Service
EIN Operation
Cincinnati, OH 45999
Subject: Request to Cancel Employer Identification Number Due to Abandonment
Dear Sir/Madam,
This letter serves as notification that [Your Business Name], EIN: [Your EIN], has been abandoned as of [Date of Abandonment]. We are therefore requesting that the assigned Employer Identification Number be canceled.
The final tax return will be filed for the period ending [Date of Final Tax Return].
Sincerely,
[Your Name]
[Your Title]
Sample Letter 13: Non-Profit Closure
[Your Business Name]
[Your Business Address]
[City, State, Zip Code]
[Date]
Internal Revenue Service
EIN Operation
Cincinnati, OH 45999
Subject: Request to Cancel Employer Identification Number for Closed Non-Profit Organization
Dear Sir/Madam,
This letter serves as notification that [Your Business Name], EIN: [Your EIN], a non-profit organization, has ceased operations as of [Date of Closure]. We are therefore requesting that the assigned Employer Identification Number be canceled.
The final tax return (Form 990) will be filed for the period ending [Date of Final Tax Return].
Sincerely,
[Your Name]
[Your Title]
Sample Letter 14: Business Never Started
[Your Business Name]
[Your Business Address]
[City, State, Zip Code]
[Date]
Internal Revenue Service
EIN Operation
Cincinnati, OH 45999
Subject: Request to Cancel Employer Identification Number – Business Never Started
Dear Sir/Madam,
This letter is to inform you that [Your Business Name], EIN: [Your EIN], was assigned an EIN but never commenced business operations. Therefore, we request the cancellation of this EIN.
No tax returns have been or will be filed.
Sincerely,
[Your Name]
[Your Title]
Conclusion
Canceling your EIN is a vital step in formally closing or altering your business. Using these sample letters as a starting point, remember to carefully tailor each letter to your specific circumstances and ensure accuracy. Always keep a copy of the letter and any acknowledgment received from the IRS for your records. Consulting with a tax professional is recommended to ensure complete compliance and address any unique aspects of your business closure. By following these steps, you can efficiently manage the EIN cancellation process and avoid potential future complications.