Disclaimer
This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice specific to your situation.
Detailed Answer
When an executor administers a Kansas estate, the federal government requires obtaining an Employer Identification Number (EIN) for tax filings and estate accounts. Although the EIN process is federal, Kansas law grants executors authority to manage estate assets and file returns. Under K.S.A. 59-1305, an executor may take all actions necessary to settle the decedents affairs, including tax matters (K.S.A. 59-1305).
Step 1: Determine the Need for an EIN
An estate needs an EIN if it will open a bank account, receive income (such as interest or dividends), or file a federal estate or income tax return (Form 1041). You must obtain an EIN even if the decedent died with a Social Security number.
Step 2: Gather Required Information
- Decedents full name and Social Security number.
- Executors name, address, and Social Security number or ITIN.
- Estate mailing address (usually the executors address).
- Date of death and county of residence at death.
Step 3: Complete IRS Form SS-4
Download Form SS-4 from the IRS website (Form SS-4). Fill in all applicable fields, including:
- Line 1: Estate name (e.g., “Estate of Jane Doe, Deceased”).
- Line 3: Executors name.
- Line 7b: Executors taxpayer identification number.
- Line 10: Reason for applying (“Estate”).
Step 4: Submit Your Application
Online application is the fastest method. Visit the IRS EIN Assistant at IRS EIN Online. You can also fax or mail your completed Form SS-4 to the appropriate IRS office (see instructions on page 4 of Form SS-4).
Step 5: Receive and Use Your EIN
Once approved, the IRS issues the EIN immediately for online applications or within four weeks by mail. Use this number for all estate banking transactions, assets sales, and to file Form 1041, U.S. Income Tax Return for Estates and Trusts.
Helpful Hints
- Apply online during weekdays for same-day issuance.
- Keep a stamped copy of the application for your records.
- Notify all financial institutions to use the new EIN, not the decedents SSN.
- Store EIN confirmation letter in the estate file for future reference.
- Review IRS Publication 559 for additional guidance on estate and trust taxation.