The nine digit Employer Identification Number issued by the Internal Revenue Service identifies your corporation and must be used on all correspondence sent to the IRS or the Social Security Administration. While a corporation might dissolve, its EIN does not. No matter how small or large the corporation, it should only have one EIN.
Dissolving the Corporation
Once the corporation has its EIN, that number belongs to it and never changes, much like a Social Security number for a person. If the corporation no longer files federal taxes or ceases to exist, the EIN is never allotted to another business entity. The IRS does not cancel an EIN. However, if the corporation dissolves or a business never actually starts up, the IRS might close the corporate or business account. If the corporation or business is ever revived, the EIN can be used again.
Closing the Account
To close the corporate or business account, contact the Internal Revenue Service at its Cincinnati, Ohio 45999 address. In your correspondence, state why you are closing the account. Include your copy of the EIN Assignment Notice you received when the EIN was issued. Also include the complete corporate name, business address and EIN. If the corporate or business name differs from the legal name, include that information in your letter.
Complete IRS Form 966 Corporate Dissolution or Liquidation when dissolving your corporation. File the form within 30 days after the corporation adopts a resolution to dissolve or liquidate its stock. If any supplemental resolutions are adopted, file another Form 966 within 30 days after the adoption or amendment. Include the section of the IRS code under which the dissolution occurs. This information may be found in the “Internal Revenue Manual,” Part 4, Chapter 11, Section 7.
Before dissolving, the corporation must pay all federal taxes due and file any quarterly or annual employment tax forms on IRS Form 940 and 941. Employees must receive final withholding and wage information, with any information from W-2 forms reported to the IRS. The final pension or employee benefit plans must be submitted using IRS Form 5500. Any capital losses or gains must also be reported, along with partners or shareholders share of income with credits and deductions. These IRS forms vary according to the specific situation. Any business asset sales or property exchanges must be listed for the IRS on Form 4797. Your accountant should be able to provide you with the correct forms for filing with the IRS.