Steps to Obtain your Estate Tax ID Number Online

Steps to Obtain your Estate Tax ID Number Online

Let’s face it, dealing with the death of a loved one is never enjoyable; but with a little understanding of what you’re going to need in advance, you can soften the hardships involved with settling your Estate of Deceased. The first thing you’re going to need is your Estate’s Tax ID (EIN) Number – which will allow you to open a bank account for your Estate. Simply follow this step-by-step guide to obtain your Estate Tax ID Number online. Start with these common definitions below and you’re on your way to obtaining the Tax ID (EIN) Number for your Estate of Deceased.

Steps to Obtain your Estate Tax ID Number Online:

1. Prepare Your Information
2. Name the Estate Executor or Administrator
3. Apply for Estate Tax ID Online
4. Apply for Estate Tax ID by Traditional Mail
5. Apply for Estate Tax ID by Fax
6. Receive your Tax ID (EIN) Documents

What is an Estate of Deceased?

An Estate of Deceased consists of all the property and assets a person owns or controls. Estate property may be in the deceased person’s name, held in a partnership or through a trust. This includes a wide array of items such as real estate, life insurance, bank accounts, retirement accounts and all other monies generated upon the person’s death. Excluded from an estate is any money transferred to an irrevocable trust throughout the course of one’s life, as anything deposited in an irrevocable trust cannot be taken back.

What is an Executor vs. Administrator?

Upon a person’s death, a dedicated Executor or Administrator (usually a family member) will have to handle the distribution of the deceased’s property. If he or she left a will, they must name an “Executor” to distribute assets fairly. If there was no will at the time of death (or no Executor named in the will), an “Administrator” will be appointed by the probate court to handle these disbursements.

 

How to get a Tax ID Number for an Estate of Deceased:

1. Prepare Your Information

Have your personal and estate information ready prior to starting the secure Tax ID (EIN) application. For an Estate Tax ID, you will be asked for your social security number (SSN) as well as the SSN of the deceased. Know the date that the Estate was created and it’s closing month of the accounting year.

2. Name the Estate Executor or Administrator

Only the Executor or Administrator of the estate account may apply for an Estate Tax ID as it requires personal information of the named responsible party – such as full name, address, etc. This is either the Executor named in the will of the deceased or an Administrator appointed by a probate court.

3. Apply for Estate Tax ID Online

You can obtain your Estate Tax ID or Federal Employer Identification Number (EIN) today by using the Online Estate EIN Application. The online application process has an average processing time of 30 minutes and is open 7:00am to 10:00pm PST. Please note, the IRS no longer provides phone support for Tax ID (EIN) applicants; if you are trying to get an EIN for your estate account after hours, there are alternative EIN obtainment services available 24/7.

4. Apply for Estate Tax ID by Traditional Mail

The IRS additionally offers a Tax ID obtainment service for Estates via traditional mail. This option typically takes 4-5 weeks, depending on IRS workload. If your application is denied due to error, you will receive a denial message. Note that denials often provide no instruction about how to fix the problem and you may have to start the Estate EIN application process over.

5. Apply for Estate Tax ID by Fax

Tax ID Number applications are accepted by fax at the IRS and typically takes up to 4 days to process faxed applications. Use caution as this method is not 100% foolproof. There is no confirmation that your fax was delivered or that anyone received it on their end.

6. Receive your Tax ID (EIN) Documents

After completing the secure online Estate EIN (Tax ID) Number application, you should receive an email containing the Tax ID Number for your Estate – ready for immediate use. Additionally, be on the lookout for a traditional mail envelope containing your official Tax ID documents from the Internal Revenue Service.

To obtain your Estate Tax ID immediately, get started now!

Estate Tin Application: FAQ

1. What is an Estate TIN, and why is it necessary?
An Estate TIN (Taxpayer Identification Number) is a unique nine-digit number issued by the IRS to identify an estate for tax purposes. The Estate TIN is required to file its income tax returns, open an estate bank account, and manage the deceased individual’s financial matters in general. All in all, the estate TIN serves as the estate’s equivalent of a Social Security Number or Employer Identification Number (EIN).

2. Who needs to apply for an Estate TIN?
The executor, personal representative, or administrator of the estate must apply for an Estate TIN if any of these scenarios applies to them:

• If the estate generates taxable income after the individual’s death.
• If the estate needs to open a bank account to manage funds or distribute assets.
• If the estate will file Form 1041 (U.S. Income Tax Return for Estates and Trusts).

3. How can I apply for an Estate TIN?
There are three main ways in which you can apply for a TIN:

• Online: You can use the IRS EIN Assistant tool on the IRS website for immediate processing (the process takes about 30 minutes overall).
• Mail: Good old reliable mail. You have to complete Form SS-4 and mail it to the address listed on the form.
• Fax: Believe it or not, you can still send the completed Form SS-4 to the designated IRS fax number for faster processing than mail.

4. What information is required to complete the application?
When applying for an Estate TIN, you need to provide:

• The deceased person’s name, Social Security Number, and date of death.
• The name and contact information of the executor or administrator.
• The address where the estate’s correspondence should be sent.
• The reason for applying (e.g., to administer an estate).

5. How long does it take to receive an Estate TIN?

It all depends on how you sent your application. The faster, of course, is by doing so online, but it will vary for the others. Here are the average wait time for each:

• Online Applications: You will receive the TIN immediately upon completing the process.
• Fax Applications: Processing typically takes about 4-7 business days.
• Mail Applications: Processing may take 4-6 weeks.

6. Can an Estate TIN be corrected if there is an error?
Yes, you can contact the IRS Business and Specialty Tax Line if there is an error in the information provided during the application process, and request a correction. To do so, you may need to submit supporting documentation to verify the changes, so be prepared and have that documentation at hand.

7. What happens if I don’t apply for an Estate TIN?
If you fail to obtain an Estate TIN, it can lead to delays in managing the estate, such as an inability to open a bank account for the estate; cause delays in filing required tax returns, which may result in penalties, and general complications in distributing assets to beneficiaries. Avoid all of these problems and more by applying for an Estate TIN promptly ensures smooth administration of the estate.

 

---