How to Apply for an Estate Tax ID/EIN

Why is an Estate Employer Identification Number (EIN) Necessary?

If you are the trustee or a court appointed executor/administrator, it is recommended that you open a bank account in the name of the estate. Opening an estate checking account is not a requirement but it may help with keeping track of cashflow such as deposits, distributions of cash, and payments made for things like court costs or funeral expenses. Typically, opening an estate bank account only makes sense if there are cash/cash equivalents that are considered estate assets.

Managing an estate will require detailed record keeping of the in’s and out’s of any estate assets. Additionally, you will need to document and track when the estate earns income and when the estate makes payments or distributions. All estate money will need to be kept in a separate bank account. In order to open a bank account for the estate, you will need to apply for an Employer Identification Number (EIN).

What is an EIN?

The EIN is a 9-digit number that the IRS assigns and it is also required in order to file taxes and pay interest or dividends of the estate.

Do not get hung up on the name, think of it as a SSN for the estate. To apply is free but beware that there are websites out there that look like the IRS and will charge hundreds of dollars for a process that is free through the IRS.

How to Apply for an EIN:

Supporting Documents:

Before applying, you will likely need the following information to complete your application:

  1. loved one’s SSN and
  2. a copy of your court issued Letters of Administration (you will receive the Letters of Administration when the court approves your application to administer the estate).

Applying via Mail, Fax, or Online

  • Online: The fastest is to apply online and select the Estate application option.
  • Mail or by Fax:  Download form SS-4 Application and related instructions for Employer Identification Number and mail/fax the completed form along with any required supporting documentation to:
    Internal Revenue Service
    Attn: EIN Operation
    Cincinnati, OH 45999Fax: 855-641-6935

For more details visit here.

Additional Details

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