How Do You Close an IRS Business Account?
You close the account by mailing 1 signed letter to Internal Revenue Service, Ogden, UT 84201. There is no online button and no fax line. File every final return first, send the letter by certified mail, and wait 45 to 60 days.
| Step | Action | Why it matters |
|---|---|---|
| 1 | File every final federal return | Clears the account of any open filing |
| 2 | Write a letter with 5 required details | Legal name, EIN, address, reason, CP-575 |
| 3 | Mail it to IRS, Ogden, UT 84201 | Certified mail gives a dated receipt |
| 4 | Wait 45 to 60 days | The account stops requiring returns |
| 5 | Keep the receipt for 3 years | Proof the account was closed |
Source: IRS, Canceling an EIN and Closing Your Account, verified August 2026.
If the responsible party or the business address changed after the EIN was issued, file Form 8822-B before you send the closing letter, so the IRS reaches you at the current address during the 45 to 60 day window. Keep the certified-mail receipt and a copy of every final return for at least 7 years, because the IRS has retained EIN account records since 1962 and can review a closed account long after. If you already lost the assignment notice, the recovery path sits on lost LLC EIN.
No SSN. No passport upload.
What Must the Closing Letter Include?
The letter needs 5 details: the complete legal name, the 9-digit EIN, the business mailing address, the reason for closing, and a copy of the CP-575 if you still hold it. Missing any 1 detail delays the request.
| # | Detail | Example or note |
|---|---|---|
| 1 | Complete legal name of the entity | Exactly as filed on the CP-575 |
| 2 | The 9-digit EIN | In the format XX-XXXXXXX, for example 12-3456789 |
| 3 | Business mailing address | The current address, updated by Form 8822-B |
| 4 | Reason for closing the account | 1 or 2 lines, such as the business closed |
| 5 | Copy of the CP-575 notice | Attach it if available, optional if lost |
Source: IRS closing-account instructions and 26 U.S.C. section 6109, verified August 2026.
The CP-575 is the 1-page confirmation notice the IRS printed when it assigned the EIN, and only 1 copy is ever issued. Attaching it speeds the match, though the request still clears with just the 9-digit number and the legal name. The notice itself, and how to replace it, is explained on LLC CP-575 letter. If the entity operated under a name it later changed, note both names, as covered on LLC name change and EIN.
Verify the 9-digit EIN reads exactly as printed before you seal the envelope, because 1 transposed digit routes the letter to the wrong account and adds 30 or more days to the wait. The how to verify an EIN page shows how to confirm the number against a filed return or a bank record. Sign the letter by hand, because the IRS rejects an unsigned closing request, and keep 1 photocopy of all 5 details for your own file before you mail the original.
Which Final Returns Come First?
File every final return before the closing letter. A partnership files a final Form 1065, a corporation a final Form 1120 or 1120-S, and an employer a final Form 941 and Form 940. The IRS will not close an account with 1 open return.
| Entity | Final return | Deadline |
|---|---|---|
| Multi-member LLC or partnership | Final Form 1065 | 15th day of the 3rd month after closing |
| C corporation | Final Form 1120 | 15th day of the 4th month after closing |
| S corporation | Final Form 1120-S | 15th day of the 3rd month after closing |
| Single-member LLC or sole proprietor | Final Schedule C with Form 1040 | April 15 of the next year |
| Employer with payroll | Final Form 941 and Form 940 | By January 31 after the final quarter |
| Business that paid contractors | Final Form 1099-NEC | By January 31 to each contractor |
Source: IRS final-return instructions, verified August 2026.
Mark the final-return box on each form so the IRS knows no year 2 filing follows. An account with 1 unfiled return stays open, and the IRS keeps mailing notices to the address on file. Clearing all returns first is what lets the single closing letter finish the job in 45 to 60 days.
An employer that ran payroll also files a final Form 940 for federal unemployment tax and deposits any remaining balance through EFTPS before the account closes. A business that never opened, filed nothing, and earned $0 still mails the closing letter, because the EIN stays active until you tell the IRS in writing to close it. If you cannot locate the 9-digit number to enter on those final forms, recover it first through lost LLC EIN or a 147C letter.
Does the IRS Ever Reuse an EIN?
No. The IRS has never reused an EIN and never will. Once the 9-digit number is assigned, it belongs to that 1 entity for good. Closing the account does not free the number for a second business.
An EIN is 9 digits written XX-XXXXXXX, for example 12-3456789. The first 2 digits are the campus prefix, and the remaining 7 digits are sequential. Since 2001, online assignment turned the prefix into a routing artifact rather than a location, but every one of the 9 digits stays locked to the entity that received it. Because the IRS never recycles the number, a closed account is simply dormant, not erased. The full anatomy of the number sits on what is an EIN.
This permanence is written into 26 U.S.C. section 6109, which binds 1 identifying number to 1 taxpayer for the life of the tax system. The IRS has issued EINs since 1974 and has never recycled a single one across more than 200 million assignments. A dormant EIN carries no fee, no renewal, and no expiration date, so a closed account costs $0 to keep on file. If you misplace the number after closing, request a 147C letter by phone at 800-829-4933, or follow the lookup steps on how to find your EIN. The number you recover is the same 9-digit EIN you started with.
What If the Business Reopens Later?
The same EIN reactivates. Because the number was never deleted, reopening the business means you resume using the exact 9-digit EIN from your CP-575. You do not apply for a new one, and the reactivation costs $0.
To bring the account back, send a short letter with the legal name and the 9-digit EIN, or call the IRS at 800-829-4933. A fresh EIN is needed only when the entity type itself changes, such as a sole proprietorship becoming a corporation, and those exact triggers are listed on new EIN for an LLC. A reopened business that also changed its name keeps the same number and reports the new name in writing, as covered on LLC name change and EIN.
Reactivation takes no application fee and no waiting period; the account resumes accepting returns under the original 9-digit number. Report the reopening in a signed letter that carries the legal name, the EIN, and the current address, then file the next required return on time. A bank that closed the business account reopens it against the same EIN once you present the CP-575 or a 147C letter. To confirm the number is active with a lender, the how to verify an EIN page covers the exact request in 3 steps.
What Does It Cost to Close an EIN Account?
The IRS charges $0 to close a business account, the same $0 it charges to issue an EIN. The only cost is certified mail postage, roughly $4 to $8. Reactivating the same number later is also $0.
| Item | Cost | Frequency |
|---|---|---|
| IRS fee to close the account | $0 | One-time |
| Certified mail postage | $4 to $8 | One-time |
| einforllc.co filing — Standard (new EIN) | $97 | Faxed within 7 business days |
| einforllc.co filing — Fast (new EIN) | $127 | Filed within 24 hours |
| Reactivating the same EIN later | $0 | No new application |
IRS fee verified August 2026. The $97 and $127 prices apply only to filing a brand-new EIN.
Compare the $0 closing fee to the market: some filing mills charge $200 or more to mail a letter you can send for the price of 1 stamp. The IRS never invoices for an EIN, an account closure, or a reactivation, so any bill claiming a $0 government charge is a private markup. Our $97 and $127 prices cover only the work of filing a brand-new EIN by fax, entering Foreign on line 7b of Form SS-4. The federal identifier behind every one of those filings is explained on IRS EIN number.
This page states federal tax rules current as of August 2026. It is not legal or tax advice. Confirm your business's position with a licensed CPA or attorney before filing.