Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
In Arkansas, an executor (known as a personal representative) must secure an Employer Identification Number (EIN) for a decedent’s estate to handle tax filings and financial accounts. Below are the key steps under Arkansas law.
1. Obtain Letters Testamentary
Before applying for an EIN, the personal representative must be officially appointed by the probate court. After filing the will and petition in the appropriate county probate division, the court issues letters testamentary. These documents prove your authority to act on behalf of the estate.
Arkansas Code Annotated § 28-22-101 defines “personal representative.” For more information, see: Ark. Code Ann. § 28-22-101.
2. Complete IRS Form SS-4
Once you have letters testamentary, apply for an EIN from the Internal Revenue Service (IRS) using Form SS-4, Application for Employer Identification Number. The estate’s EIN is required to file federal income tax returns (Form 1041), open bank accounts, and settle debts.
Methods to apply:
- Online (Fastest): Use the IRS EIN Assistant at IRS EIN Online. Available Monday–Friday, 7 a.m.–10 p.m. Eastern Time.
- Fax: Fax a completed Form SS-4 to (855) 641-6935. Processing typically takes four business days.
- Mail: Mail Form SS-4 to Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999. Expect up to four weeks for processing.
- International Applicants: Call (267) 941-1099 (not toll-free).
3. Record and Use the EIN
After you receive the EIN, keep a certified copy with the letters testamentary. Use the EIN when:
- Filing the estate’s federal income tax return (Form 1041).
- Opening or closing bank and investment accounts.
- Reporting estate income, deductions, or distributions.
Helpful Hints
- Double-check that the name and Social Security Number of the decedent on Form SS-4 match the probate petition.
- Retain proof of EIN issuance (IRS confirmation letter) in the estate file.
- Maintain clear financial records to simplify tax reporting for beneficiaries.
- Contact the IRS helpline at (800) 829-4933 if you have questions about the EIN application.
- Consider hiring a probate attorney or accountant if the estate holds complex assets or significant tax liabilities.