# EIN cancellation letter: close the IRS business account

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By [Arthur Teboul](/authors/arthur-teboul), Founder, DokuTrak. Published 2026-10-29, updated 2026-10-29.

> **In brief:** An EIN cancellation letter asks the IRS to close a business account; the IRS cannot cancel the number, but it can deactivate it ([IRS: If you no longer need your EIN](https://www.irs.gov/businesses/small-businesses-self-employed/if-you-no-longer-need-your-ein)). The letter gives the legal name, EIN, address and reason, with the assignment notice if you kept it, and goes out only after every return is filed and every tax paid.

## The letter: Letter to close the IRS business account and deactivate the EIN

**Not advice.** This page is general information, not tax, legal or HR advice. Rules change: check the cited source and ask your own professional before you rely on it. Last reviewed October 25, 2026.

Mail this after every return is filed and every tax paid. Pick one IRS address from the table on this page and enclose the assignment notice if the client kept it. Have it signed by someone who can act for the entity: the owner of a sole proprietorship, a corporate officer, a general partner, or a managing member of an LLC.

```text
[Business legal name]
[Business address]
EIN: [XX-XXXXXXX]
[Date]
Internal Revenue Service
[MS 6055, Kansas City, MO 64108 / MS 6273, Ogden, UT 84201 / Cincinnati, OH 45999]
Re: Request to close business account and deactivate EIN [XX-XXXXXXX]

Dear Sir or Madam:

Request
Please close the business account of [Business legal name] and deactivate employer identification number [XX-XXXXXXX].

Reason
[The business never started operations / The business closed and was dissolved on (date) / The EIN was obtained in error / The entity was assigned a duplicate EIN; the EIN we keep is (number)].

Final returns (optional)
All required federal returns have been filed, including the final [Form 1120 / 1120-S / 1065 / Form 1040 with Schedule C] for tax year [year], and all tax owed has been paid.

Employment and information returns (optional)
Final employment tax returns for the period ended [date] were filed, and Forms W-2 and 1099-NEC for [year] were issued.

Enclosure (optional)
A copy of the EIN assignment notice is enclosed.

Contact
Please contact [name] at [phone] if you need anything further to process this request.

Sincerely,
[Name]
[Owner / President / General partner / Managing member]
Signature: ____________________   Date: __________
```

Download: [Word](https://dokutrak.com/downloads/pseo-v2/f4-letters/ein-cancellation.docx) · [PDF](https://dokutrak.com/downloads/pseo-v2/f4-letters/ein-cancellation.pdf)

## Deactivation, not cancellation

Once assigned, an EIN becomes the entity’s permanent federal taxpayer ID ([IRS: If you no longer need your EIN](https://www.irs.gov/businesses/small-businesses-self-employed/if-you-no-longer-need-your-ein)). **Deactivation** is what the IRS does instead of cancelling: it closes the account, and the number stays assigned to the same entity ([IRS: If you no longer need your EIN](https://www.irs.gov/businesses/small-businesses-self-employed/if-you-no-longer-need-your-ein)).

There is no IRS form and no online route for this. Both IRS pages on the subject describe a letter, mailed, or faxed for exempt organizations ([IRS: If you no longer need your EIN](https://www.irs.gov/businesses/small-businesses-self-employed/if-you-no-longer-need-your-ein)).

## File and pay first

The IRS cannot close the business account until all necessary returns are filed and all taxes owed are paid ([IRS: Closing a business](https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business)). If the business made payments, owes tax or got a notice to file, that work comes first ([IRS: If you no longer need your EIN](https://www.irs.gov/businesses/small-businesses-self-employed/if-you-no-longer-need-your-ein)).

A **final return** is the last return for the year the business closed, with the final box checked where the form has one ([IRS: Closing a business](https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business)). What else is due depends on the business, for example:

- Sole proprietor: a final Schedule C with Form 1040 ([IRS: Closing a business](https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business)).
- Employers: final employment tax returns and W-2s for the last wages paid ([IRS: Closing a business](https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business)).
- Contractors paid in the closing year: Form 1099-NEC where required, with Form 1096 for paper copies ([IRS: Closing a business](https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business)). That page gives a $600 line ([IRS: Closing a business](https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business)), which holds for payments through 2025; for tax years beginning after 2025 the line is $2,000 ([IRS Instructions for Forms 1099-MISC and 1099-NEC](https://www.irs.gov/instructions/i1099mec)).
- Corporations, S corporations included: Form 966 if the corporation adopts a resolution or plan to dissolve ([IRS: Closing a business](https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business)).
- Assets sold: forms such as Form 4797 or Form 8594, as the IRS closing page lists them ([IRS: Closing a business](https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business)).

## Where to mail it: the two IRS address lists

Two IRS pages give different addresses, and both are current IRS pages. Choose one, keep proof of mailing, and check both pages on the day you send.

| IRS page | Address it gives | Source |
| --- | --- | --- |
| If you no longer need your EIN | Internal Revenue Service, MS 6055, Kansas City, MO 64108; or MS 6273, Ogden, UT 84201 ([IRS: If you no longer need your EIN](https://www.irs.gov/businesses/small-businesses-self-employed/if-you-no-longer-need-your-ein)) | IRS deactivation page |
| Closing a business | Internal Revenue Service, Cincinnati, OH 45999 ([IRS: Closing a business](https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business)) | IRS closing page |
| Exempt organizations | Attn: EO Entity, Mail Stop 6273, Ogden, UT 84201, or fax 855-214-7520 ([IRS: If you no longer need your EIN](https://www.irs.gov/businesses/small-businesses-self-employed/if-you-no-longer-need-your-ein)) | IRS deactivation page |

## Exempt organizations: when deactivation is not possible

An exempt organization cannot deactivate its EIN if it has applied for exemption, been covered by a group ruling or filed an information return ([IRS: If you no longer need your EIN](https://www.irs.gov/businesses/small-businesses-self-employed/if-you-no-longer-need-your-ein)). Such an organization terminates instead, or calls the IRS at 877-829-5500 ([IRS: If you no longer need your EIN](https://www.irs.gov/businesses/small-businesses-self-employed/if-you-no-longer-need-your-ein)).

If none of those applies, it sends the same kind of letter, with the EIN, legal name, address, assignment notice if available, and reason ([IRS: If you no longer need your EIN](https://www.irs.gov/businesses/small-businesses-self-employed/if-you-no-longer-need-your-ein)). The **assignment notice** is the letter the IRS mailed when it issued the number, the CP575 ([IRS: Understanding your CP575 notice](https://www.irs.gov/individuals/understanding-your-cp575-notice)).

## An EIN obtained but never used

This is the simplest case. The file-first rule applies to a business that made tax payments, owes tax or received a notice to file ([IRS: If you no longer need your EIN](https://www.irs.gov/businesses/small-businesses-self-employed/if-you-no-longer-need-your-ein)). If none of that happened, say so plainly in the reason line.

Keep a copy of the letter, the mailing proof and any final returns. If the owner starts a new venture later, the old number stays with the old entity; see [Form 8822-B](/letters/form-8822-b) for changes that do not need a new EIN ([IRS: Employer identification number](https://www.irs.gov/businesses/employer-identification-number)).

## Questions people ask

### Can you cancel an EIN online?

No. The IRS describes only a letter, by mail, or by fax for exempt organizations, and it deactivates the number rather than cancelling it ([IRS: If you no longer need your EIN](https://www.irs.gov/businesses/small-businesses-self-employed/if-you-no-longer-need-your-ein)).

### Is there an IRS form to cancel an EIN?

No form exists. The IRS asks for a letter with the legal name, EIN, address, reason and the assignment notice if available ([IRS: Closing a business](https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business)).

### Can I reuse the EIN later?

The EIN stays the entity’s permanent number ([IRS: If you no longer need your EIN](https://www.irs.gov/businesses/small-businesses-self-employed/if-you-no-longer-need-your-ein)). A new entity, or a change of ownership or structure, generally needs its own EIN ([IRS: Employer identification number](https://www.irs.gov/businesses/employer-identification-number)).

### What if I got an EIN but never started the business?

Send the same letter, giving “business never started” as the reason. With no filing requirement or tax due, nothing needs to be filed first ([IRS: If you no longer need your EIN](https://www.irs.gov/businesses/small-businesses-self-employed/if-you-no-longer-need-your-ein)).

## Sources

- [IRS: If you no longer need your EIN](https://www.irs.gov/businesses/small-businesses-self-employed/if-you-no-longer-need-your-ein): The IRS deactivates rather than cancels an EIN, lists the letter contents and the Kansas City and Ogden addresses, and sets the exempt-organization rules.
- [IRS: Closing a business](https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business): To close the IRS business account, send a letter with the legal name, EIN, address and reason; the IRS cannot close it until all returns are filed and taxes paid. The page lists the final forms by entity type, such as Form 966 for a corporation that adopts a plan to dissolve.
- [IRS: Employer identification number](https://www.irs.gov/businesses/employer-identification-number): Lists the three ways to confirm an EIN, the fax and mail application timings, the 800-829-4933 line and its hours, and says a name, address or responsible-party change needs no new EIN.
- [IRS: Understanding your CP575 notice](https://www.irs.gov/individuals/understanding-your-cp575-notice): The digital CP575 is available only through Business Tax Account, substitutes for the CP575A-J series and Letter 147C, and the original CP575A-J cannot be duplicated.
- [IRS Instructions for Forms 1099-MISC and 1099-NEC](https://www.irs.gov/instructions/i1099mec): For tax years beginning after 2025, the minimum reporting threshold for these payments rose to $2,000, indexed for inflation from 2027.

## More on this topic

- [EIN letters from the IRS](/letters)
- [CP575 and the digital CP575](/letters/cp575-ein-confirmation)
- [Form 8822-B](/letters/form-8822-b)
- [Form 1099-NEC](/documents/1099-nec)

## About the author

Arthur Teboul (Founder, DokuTrak) is building DokuTrak after watching professionals lose hours chasing clients for documents over email. [Arthur Teboul](/authors/arthur-teboul).

How this page was made (methodology): it is built from the primary sources listed under Sources, and every rule and figure on it links to the source it comes from. Last updated October 25, 2026. Spotted an error or a rule that changed? [Contact us](/contact).

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