Detailed Answer
An Employer Identification Number (EIN) is a federal tax ID issued by the IRS for estates. It allows the personal representative (often called an executor) to open bank accounts, file tax returns, and manage estate finances. Although Arizona law does not require a state-level ID, the personal representative must still obtain an EIN to comply with federal tax rules.
Arizona Personal Representative Authority
Under Arizona law, a personal representative has the duty to collect and manage the decedent’s assets. For example, A.R.S. §14-3603 authorizes the personal representative to collect estate property, and A.R.S. §14-3703 outlines general duties and powers.
Step-by-Step Guide to Obtain an EIN
- Gather Information: You’ll need the decedent’s name, Social Security Number, date of death, and the estate’s mailing address.
- Complete IRS Form SS-4: This is the application for an EIN. You can fill it out online or on paper. The form is available at https://www.irs.gov/pub/irs-pdf/fss4.pdf.
- Apply Online: Visit the IRS EIN application portal at IRS EIN Online Application. This is the fastest method and you receive the EIN immediately.
- Apply by Fax or Mail: If you prefer paper, fax the completed SS-4 to the IRS at the number listed on the form or mail it to the IRS address in the instructions. Allow 4–6 weeks for mail processing.
- Retain Confirmation: Keep the IRS confirmation letter with your estate records. You’ll need it to open bank accounts and file estate tax returns.
Federal Tax Requirements
The estate uses its EIN to file Form 1041 (U.S. Income Tax Return for Estates and Trusts) if the estate earns taxable income over $600 during the tax year. The EIN also appears on bank and brokerage accounts opened in the estate’s name.
Disclaimer: This article is for educational purposes and does not constitute legal advice. For personalized guidance, consult a qualified attorney or tax professional.
Helpful Hints
- Apply online when possible—the process is instant and free.
- Double-check the decedent’s personal information on Form SS-4 to avoid processing delays.
- Maintain a dedicated estate bank account using the EIN to keep estate funds separate.
- File Form 1041 by April 15 (or request an automatic six-month extension) if the estate generates income.
- Store all EIN correspondence with the estate’s official records to simplify future reporting.