Detailed Answer
An Employer Identification Number (EIN) is a unique nine-digit number issued by the IRS to identify an estate for federal tax and administrative purposes. In Georgia, executors must obtain an EIN to file the estate’s federal tax returns, open estate bank accounts, and manage assets separately from personal funds. Georgia does not impose a state estate tax, so no separate Georgia tax ID is required for an estate under O.C.G.A. § 48-1-2. Follow these steps to secure an EIN:
Step 1: Confirm the Need for an EIN
If the decedent’s estate will file Form 1041, operate a business, or withhold taxes on income, you must obtain an EIN. Even for simple estates, banks typically require an EIN to open an estate account.
Step 2: Gather Required Information
- Decedent’s full name and Social Security number
- Executor’s name, mailing address, and SSN
- Legal name of the estate (usually “Estate of [Decedent’s Name]”)
- Type of entity (“Estate”) and reason for applying (“Probate”)
Step 3: Choose an Application Method
The IRS offers three methods:
- Online (fastest): IRS Online EIN Application
- Fax: Complete Form SS-4 and fax to the appropriate IRS number (found in the Form SS-4 instructions)
- Mail: Send the completed Form SS-4 to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Step 4: Complete Form SS-4
On Form SS-4, list the decedent’s estate as the entity, and provide the executor’s details in the responsible party section. Indicate the reason for applying as “Probate” and enter the date of decedent’s death.
Step 5: Receive and Record the EIN
Online applicants receive an EIN immediately. Fax applicants generally receive the EIN within four business days. Mailed applications can take up to four weeks. Keep a copy of the confirmation notice in the estate’s records.
Since Georgia abolished its estate tax in 1987, no state estate tax return or state EIN is necessary. If the estate conducts business or has income in Georgia, register the estate as a fiduciary with the Georgia Department of Revenue at dor.georgia.gov.
Disclaimer: This article is for educational purposes and does not constitute legal advice.
Helpful Hints
- Apply online for instant EIN issuance.
- Ensure executor information matches probate records.
- Use the EIN for all estate bank and brokerage accounts.
- Retain the IRS confirmation for future filings.
- Consult a tax professional for complex estates.