This EIN Cancellation Letter is issued when a business or entity no longer needs an EIN, or when the EIN was assigned in error.
An EIN is a unique nine-digit number assigned by the IRS to identify a business entity for tax purposes. This number is required for all businesses that have employees, operate as a partnership, corporation, or LLC, or file certain tax returns.
There are several reasons why a business may need to cancel its EIN. For example, if the business has closed down or merged with another company, it may no longer require an EIN. Additionally, if a business was assigned an EIN in error, it may need to cancel it and apply for a new one.
To cancel an EIN, businesses must complete Form 147c, also known as the EIN Letter of Cancellation. This form requests information about the business, including the EIN to be canceled and the reason for cancellation. Once completed, the form can be faxed or mailed to the IRS.
It’s important to note that canceling an EIN does not necessarily cancel the business itself. The business must still comply with any state and local regulations for closing or dissolving a business entity.
Receiving a cancellation letter for EIN can be stressful for businesses, as it may indicate a mistake or problem with their tax records. However, it’s important to address the issue promptly to avoid any potential penalties or legal issues.
Sample EIN Cancellation Letter Template with Examples
If you are a business owner, you know that maintaining an EIN (Employer Identification Number) is essential for your company’s financial health. But what happens when you want to cancel your EIN? This is where Templatediy comes in with the easy-to-use and affordable letter template.
If a business receives a cancellation letter in error, it should contact the IRS immediately to resolve the issue. It’s possible that the cancellation was a mistake, or that there was a mix-up with another business’s records.