How Does an Executor Obtain an EIN for the Estate?
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When a person dies owning assets that generate income, Florida law requires the estate to file federal tax returns. To do so, the appointed executor must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number serves as the estate’s federal tax ID and allows the executor to report income, pay taxes, and open bank accounts in the estate’s name.
Step 1: Confirm the Need for an EIN
An EIN becomes necessary if the estate will:
- Generate income after the decedent’s date of death (e.g., interest, dividends, rent).
- Operate a business owned by the decedent.
- File federal estate or fiduciary income tax returns (Form 1041).
Step 2: Gather Required Information
Prepare the following details before applying:
- Decedent’s full name and Social Security Number.
- Date of death.
- Executor’s name, mailing address, and Social Security Number or ITIN.
- Type of entity (estate) and reason for applying (probate estate of a decedent).
Step 3: Apply for the EIN
You can obtain the EIN using one of three methods:
- Online (fastest): Visit the IRS Online EIN Application portal and follow prompts: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
- By Fax: Complete IRS Form SS-4 and fax it to the IRS. Fax numbers vary by state; check IRS instructions at https://www.irs.gov/pub/irs-pdf/p1635.pdf
- By Mail: Mail the completed Form SS-4 to the address listed in the IRS instructions. Expect a 4–6 week processing time.
Once the application is processed, the IRS issues the EIN immediately online or returns it via fax or mail. Keep a printed or electronic copy in the estate file.
Florida Statutory Reference: The role and appointment of an executor in Florida appear in the Florida Probate Code, Chapter 731, Section 731.201: Fla. Stat. §731.201.
Helpful Hints
- Apply early. Federal processing delays can slow probate administration.
- Use the estate’s EIN on all post-death financial accounts and tax filings.
- Retain copies of all IRS correspondence in the estate’s records.
- If the executor lacks an SSN or ITIN, apply for an ITIN first using IRS Form W-7.
- Consult a qualified probate attorney or tax professional for complex estates.