How to Get An Estate EIN/Tax ID in Six Easy Steps

Employer Identification Numbers (EINs) are nine-digit identifiers the Internal Revenue Service issues to businesses. These codes are primarily used for business activities like filing business taxes, opening bank accounts, and hiring employees.

However, businesses aren’t the only ones who need EINs; estates do, too. Since estates are considered juridical entities, they must have an EIN to file estate taxes, transfer assets, and manage any income they generate on behalf of the deceased. It’s the key to seamless estate management and administration.

If you’re wondering how to get an EIN for an estate, you’ve come to the right place. The process is straightforward and we’re here to guide you through it. Below, we’ll walk you through the step-by-step process of obtaining an EIN for your loved one’s estate.

What’s an Employer Identification Number?

An Employer Identification Number (EIN), often called a federal tax ID number, is a nine-digit code the IRS uses to identify the tax accounts of employers, businesses, and other entities, such as estates.

EINs work like Social Security Numbers (SSNs). They’re essential for filing taxes, reporting income, and opening bank accounts. Since SSNs expire once their owners die, estates must obtain a new tax ID number to manage their finances in the future.

There are several scenarios where an estate could continue to generate income even after the grantor’s death. For instance, if the deceased owned rental properties and their estate continued to receive rental payments of over $600, the executor must open a bank account to collect the earnings and pay income taxes.

Ultimately, getting an EIN/tax ID for an estate ensures that your loved one’s finances will be handled properly after death.

What Do I Need to Apply For An EIN/Tax ID For An Estate?

Before you apply for an EIN/tax ID for your loved one’s estate, make sure you have the following information:

• Legal name and SSN of the deceased.
• The date of death of the deceased.
• Your SSN and mailing address to serve as the estate’s address.
• Information on when and where the estate was probated and the closing month of the accounting year.

How to Get An EIN Number/Tax ID For An Estate

Getting an EIN number is relatively easy; all you need to do is:

Go to the IRS Website

Go to the IRS website and click the “Apply for an Employer ID Number (EIN)” link on the home page. The link will redirect you to the EIN application guide, where you can find the “Apply online now” button.

Read the Guidelines

Once you click the apply button, the EIN assistant will pop up and give you the general guidelines for the application process. Read through them and make note of the restrictions listed on the page.

Since the form can only be completed in one session, ensure a reliable internet connection.

Fill Out the Deceased’s Information

From the legal structure options, choose “Estate” and click continue. The EIN assistant will give you a quick breakdown of an estate to ensure you’re picking the right option.

Afterward, you’ll be asked to provide the information we mentioned earlier. Type out the deceased’s full name and SSN.

Fill Out Your Personal Information

On the next page, fill out your information and choose your fiduciary title. You’ll also be asked to enter your contact information and mailing address, which will be the estate’s official address.

Fill Out the Estate’s Information

Next, you’ll be asked to fill out the estate’s information. Indicate which county, state, or territory was probated, the date of probate, and the closing month of the accounting year. You must also disclose if the estate expects to have employees in the next 12 months.

Before you proceed with the last stage of the application process, carefully review the information you’ve input. You want to ensure that your form is accurate, as errors could delay your application.

Choose How to Receive Your Confirmation Letter

Lastly, the EIN assistant will ask you how you would like to receive your confirmation letter: by mail or online. The fastest way is online. But if you want to receive it by mail, note that it takes up to four weeks for the letter to be delivered to your home.

Tips for Obtaining A EIN/Tax ID For An Estate

If you want to speed up your EIN application process, consider the following tips:

Prepare Your Documents

Before you start the application process, prepare and complete your requirements. This way, you don’t have to spend hours looking for documents and can finish your form quickly.

Double-check Your Form

Double-check your forms and ensure they’re accurate before submitting them. Any errors in your form could delay the application process and even result in rejection.

Get An EIN/Tax ID For An Estate Today

Need help getting an EIN/Tax ID for an estate? Look no further than Inc. Authority!

Inc. Authority offers free EIN application assistance to executors and administrators nationwide. Our team will help you get an EIN/tax ID for your loved one’s estate free of charge. We’ll waive our service fees and overhead costs so that you only have to worry about your state’s taxes.

To learn more, visit our website here.