Easy Doc Filing, LLC, and its employees, agents, and representatives, are not affiliated with the Internal Revenue Service (“IRS”) or any other governmental or regulatory body or agency. Easy Doc Filing, LLC provides paid services to obtain Federal Tax Identification Numbers from the IRS. As a “Third Party Designee,” pursuant to IRS Form SS-4, Easy Doc Filing, LLC prepares and submits applications for an Employer Identification Number (“EIN”) to the IRS on behalf of its clients. Easy Doc Filing, LLC does not verify EIN application submissions and is not responsible for the accuracy of the information provided. Any individual may obtain and submit his or her own EIN application at no cost through the official IRS website at www.irs.gov Easy Doc Filing, LLC may derive revenue from the partnerships we have entered with, and/or our promotional activities may result in compensation paid to Easy Doc Filing, LLC. Fundbox makes capital available to businesses through business loans and lines of credit made by First Electronic Bank, a Utah chartered Industrial Bank, member FDIC, in addition to invoice-clearing advances, business loans and lines of credit made directly by Fundbox.
As you administer the estate of your loved one, you must obtain a tax ID number. Executors cannot simply use the social security number of the decedent in order to file taxes or open accounts on behalf of the estate. Instead, the estate must be treated as its own tax entity. Fortunately, there are many quick options for obtaining this ID number.
Four Reasons Estates Need Tax ID Numbers
Aside from the fact that law requires it, there are several practical reasons for obtaining a tax ID number on behalf of an estate. These reasons include the following:
- Filing estate income tax returns
- Filing estate tax returns
- Opening up a bank account for an estate
- Opening up investment accounts for an estate
Just like people, estates are required to report their income, expenses, and distributions to the IRS; the tax ID number is needed in order to do so. Similarly, assets of the estate must be kept separate. In order to open up the necessary accounts, a tax ID number is required.
If you found this information helpful, we encourage you to reach out to learn more. One way to do so is to sign up for our free newsletter, which offers informative, engaging content that will teach you more about the ins and outs of estate planning, estate modification, and estate administration in California. Sign up today by completing our easy online form.
An EIN—also known as an employer identification number—is often used to identify an estate when there is an active probate. The EIN is provided by the IRS and should be obtained by the personal representative or executor once the letters testamentary or letters of administration have been issued. The EIN is necessary for the personal representative to open up an estate bank account at a local or national bank.
The estate bank account is used to hold funds from the decedent’s estate until the probate is wrapped up and the funds from the estate bank account are distributed to the decedent’s beneficiaries. The EIN is also used if there are investments or other assets of the estate that are generating income so that the financial institutions can issue a Form 1099 to the estate.
To obtain an EIN for the estate, the personal representative or executor can apply online (link: //sa.www4.irs.gov/modiein/individual/index.jsp), by mail, or by filing a paper application for the EIN (SS-4).
We recommend that you apply for the EIN online as it is the easiest way to do so. Here’s a quick step-by-step guide on how to apply for an estate EIN using the IRS’ website:
- Step 1
- Step 2
- Step 3
- Step 4
- Step 5
- Step 6
- Step 7
- Step 8
- Step 9
Step 1
Navigate to the IRS’ online application portal, read through the instructions, and click “Begin Application.”
Step 2
Choose the Estate option if there is an open probate. If the decedent also had a Trust, then you should consult with an attorney as to whether or not you will also need an EIN for the Trust.
Step 3
Read the following prompt, make sure that you need an estate EIN, and then hit continue.
Step 4
You will type in the decedent’s name and social security number. Make sure the information you have matches IRS’ records otherwise you will be prevented from moving forward.
Step 5
If you are the personal representative, executor, or administrator applying for the EIN, then you will type in your identifying information. Again, your information must match IRS records or you will not be able to proceed. Make sure to choose the correct fiduciary title based on your state—either personal representative, executor, or administrator. Here in Florida we use the term personal representative.
Step 6
You will type in the mailing address for the estate.
Step 7
You will type in the County and State where the estate is being probated. And you will type in the decedent’s date of death and the closing month of the accounting year. Most closing months for the accounting year will be in December.
Step 8
You will choose either yes or no depending on whether the estate will hire any employees. Most estates will not have any employees. If you’re unsure, please consult with your attorney.
Step 9
Congratulations! You’ve successfully applied for the estate EIN. You can choose to have the EIN number given to you online in the form of a PDF document, or you can choose to have the EIN mailed to you. We always recommend choosing the PDF document option. Make sure to save the EIN PDF on your computer and to send a copy to your attorney.
Bishop L. Toups
Bishop L. Toups is an estate planning, elder law, and tax attorney in Southwest Florida.
Learn more ➜
Stand Up To The IRS
A NOLO published book
IRS Bills? The Internal Revenue Service can wreak havoc on your life. This book has the information and strategies you need to confront America’s most intimidating agency.
View on amazon
Tax Savvy For Small Business
A NOLO published book
Create a business tax strategy that will save you time, energy and money. Getting your tax on track will free time to do what really counts - running a profitable business.
View on amazon
Surviving An IRS Tax Audit
A NOLO published book
Worried about escaping an audit intact? Then you need Surviving an IRS Tax Audit. This book explains what to say, what to do, even what to wear, so that a visit from the auditor doesn't turn into a disaster.
View on amazon