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It’s not easy to be put in charge of someone else’s property, especially after that person has passed away. Managing their affairs after they’re gone can definitely be overwhelming, especially if you were family (or at least close), and that doubles when it comes to navigating the tax responsibilities that come with the estate management duties. A crucial step of these responsibilities is obtaining an Employer Identification Number (EIN) for the estate.
We’ve covered the importance and function of the EIN before, so for this article we’ll mostly guide you through the process of applying for and getting the EIN. We will also give you a quick refresher on what this number is and just how important it is for the estate to have. Knowing if half the battle, as they say, and as an executor you will need all the help you can get. Don't worry, here's how to apply for Estate Tax ID (EIN).
• Prepare Business Owner Information
• Apply for an Estate Tax ID (EIN) Number Online
• Apply for an Estate Tax ID (EIN) Number by Phone, Mail or Fax
• How Long Does It Take to Get a Tax ID Number for an Estate?
• Do I Need a Tax ID Number to Open an Estate Account?
• How Do I Establish an Estate Tax ID Number?
Apply for Estate Tax ID (EIN) Number Online
Begin Estate Tax ID (EIN) Number Application
What Is An Estate Tax ID Number (EIN)?
When someone passes on, their identity is separated from their remaining assets for the purposes of filing taxes and managing finances. When the remaining assets are separated, they become known as the individual`s estate. An estate, like a person, has a Federal Tax Identification Number or Employer Identification Number - in this case, it's referred to as an estate tax ID number. This estate tax ID will be needed to complete a number of estate-related tasks.
1. Prepare Business Owner Information
To get an estate tax ID (EIN), you'll need information about the original holder of the estate. Your first step will be to gather information about the individual who has passed, including:
• Your own Social Security number. In order to apply for an estate tax ID on behalf of a deceased individual, you should be named as either the administrator or the executor of the estate.
• The deceased's Social Security number. As an estate tax ID has to be acquired connected to a deceased individual, that individual has to be identified through their own Social Security number.
• The deceased's full name, birthdate and address. In order to identify the deceased reliably, you will need basic information about where they lived, when they were born and their full legal name.
• Information about the estate itself. You should know when the estate was created as well as the accounting year it is currently on - an accountant can help you with this information.
Once you have the information above, you can begin the process of applying for your estate of deceased tax ID.
2. Apply for an Estate Tax ID (EIN) Number Online
Applying for an estate tax ID online is the easiest and fastest method to obtain your official tax ID. While an estate tax ID can also be applied for through phone, mail or fax, an online application is generally completed within a few minutes, and you can have your Tax ID Number emailed to you within one hour. When you need an estate tax ID, you often need it quickly. Applying by mail can take as long as six weeks, during which time an executor may not be able to open estate bank accounts or pay estate taxes. It is a good idea to apply for your Estate of Deceased Tax ID as soon as possible in order to be ready for required duties of the estate's administrator or executor.
3. Apply for an Estate Tax ID (EIN) Number by Phone, Mail or Fax
An estate executor or administrator can call in to get more information about acquiring an estate tax ID, but ultimately the application will need to be submitted either online, through the mail or by fax. When an application is sent through the mail, it will take at least a few weeks to be processed. It's possible that an incorrect application will lead to a denial. If it does, you will need to start the process over again, correcting the issues on the application and waiting another few weeks to receive the estate tax ID.
When an application is sent through fax machines, it will take up to four days to be processed. However, there are some issues with the reliability of the fax service. It isn't always possible to tell whether an application was received through a fax service, and it may take some time to receive requests for correction. Ultimately, though it is possible to apply for an estate tax ID through different channels, the online application process is generally much smoother.
4. How Long Does It Take to Get a Tax ID Number for an Estate?
It takes less than an hour to acquire a tax ID number when an application is submitted online. When an application is submitted via fax, it will take up to four days. When an application is submitted by mail, it will take up to six weeks. Applications may be delayed if they require corrections. If the application cannot be approved as it has been submitted, the application will be returned and the entirety of the process will need to begin again.
With an online application, the turnaround time can be quite fast. With an application via the mail, an error may add weeks of waiting. When using a professional estate tax ID service, errors will be minimized and the application can be processed within an hour. This is the best way to acquire an estate tax ID quickly.
5. Do I Need a Tax ID Number to Open an Estate Account?
An estate bank account cannot be opened without a tax ID number. This is important as an estate account is the account that is used to take care of the estate itself. Maintenance costs, mortgage payments and insurance payments are examples of payments that might need to be taken out of an estate account until the estate has been fully distributed.
Tax ID numbers are used both to open estate bank accounts and to file estate taxes. Both of these things have to be done to reduce the potential for fines and penalties later on. Getting a tax ID number is one of the first things an executor or administrator of an estate should do because it isn't possible to close the estate without filing taxes.
6. How Do I Establish an Estate Tax ID Number?
To establish an estate tax ID number, first collect information about the deceased individual and their estate. Once you have the information that you need, you can apply for an estate tax ID number online. Your tax ID number will be delivered to you within an hour, after which time you can use it to open bank accounts and send in tax payments.
As an administrator or executor of an estate, it's your responsibility to make sure that bills are paid on time and the estate is taken care of until it can be fully dissolved. Your first step will be to apply for an estate tax ID. Once you've acquired a tax ID number, you'll be able to open new bank accounts, pay bills and file taxes as needed.
Applying For An EIN: FAQ
FAQ: How to Apply for an Estate Tax ID
1. What is an estate tax ID, and why is it needed?
In short, an estate tax ID, AKD the Employer Identification Number (EIN), is a unique number issued by the IRS to identify an estate for tax purposes. It is required for many things, such as file the estate's income tax return (using Form 1041), open a bank account in the estate’s name, and manage the estate’s financial matters such as paying debts, distributing assets, or selling property.
2. Who can apply for an estate tax ID?
The person responsible for applying for the estate tax ID will be the executor, personal representative, or administrator of the estate. This person must have the legal authority to manage the estate’s financial affairs and must provide their Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) during the application process.
3. How do I apply for an estate tax ID?
These are the ways in which you can apply for an estate tax ID, presented from fastest to slowest:
• Online: The quickest method by far. Use the IRS EIN Assistant tool, and receive the EIN immediately.
• By Fax: Complete Form SS-4 and fax it to the IRS. Processing typically takes 4-7 business days. Still reasonable.
• By Mail: Submit Form SS-4 to the IRS by mail. Processing may take 4-6 weeks. Use only when absolutely necessary.
4. What information is required to apply for an estate tax ID?
Here’s the documentation you’ll need to provide when applying for the EIN. Make sure you have all of these at hand when applying for it:
• The deceased individual’s name, SSN, and date of death.
• The legal name and address of the estate.
• The name, SSN/ITIN, and contact information of the executor or administrator.
• The reason for applying (e.g., to administer the estate).
5. Is there a fee to apply for an estate tax ID?
No, the IRS does not charge a fee for obtaining an EIN for an estate; it's completely free of charge. It would serve you well to be suspicious of anyone charging you for “assistance” with the application process. Trust only your broker or a tax professional if you need help with it!
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Frequently Asked Questions
What is an estate tax ID number and why does an estate need one?
When a person passes away, their remaining assets are legally separated from their identity and become known as the estate, which requires its own Federal Tax Identification Number — called an estate tax ID or EIN. Just as a living person has a Social Security number, an estate needs this number to handle tax filings and financial management. The estate tax ID is required to complete a number of estate-related tasks, including opening bank accounts and paying estate taxes.
What information is needed to apply for an estate tax ID (EIN)?
To apply for an estate tax ID, you'll need your own Social Security number (as the named executor or administrator), the deceased's Social Security number, and the deceased's full legal name, birthdate, and address. You'll also need information about the estate itself, including when it was created and its current accounting year — an accountant can help provide that detail. You must be designated as either the administrator or executor of the estate to apply on behalf of the deceased.
How long does it take to receive an estate tax ID depending on how you apply?
The processing time varies significantly by application method: online applications can be completed within a few minutes with the EIN emailed within one hour, fax applications take up to four days, and mail applications can take up to six weeks. Any errors in the application can cause additional delays, as the application will be returned and the entire process must start over. Given these timelines, applying online is strongly recommended, especially when estate duties cannot proceed without the EIN.
Can an estate tax ID be obtained by phone, fax, or mail instead of online?
While an executor or administrator can call to get more information, the actual application must be submitted online, by fax, or by mail — not over the phone. Fax applications take up to four days but carry reliability concerns, as it can be difficult to confirm receipt or track correction requests. Mail applications take at least a few weeks and risk further delays if the application contains errors that require corrections and resubmission.
Is a tax ID number required to open an estate bank account?
Yes, an estate bank account cannot be opened without a tax ID number. This account is essential for managing the estate's ongoing financial obligations, which can include maintenance costs, mortgage payments, and insurance payments until the estate is fully distributed. Because so many estate duties depend on having this account in place, it is advisable to apply for the estate tax ID as early as possible in the administration process.
About the Author
CPA
Jacob Dayan is a tax professional at IRS.com with expertise in U.S. federal and state tax law. Their articles are written to help taxpayers understand complex tax topics in plain English.