Apply for an Estate Tax ID (EIN) Number | How to Apply Online
When someone passes on, their identity is separated from their remaining assets for the purposes of filing taxes and managing finances. When the remaining assets are separated, they become known as the individual`s estate. An estate, like a person, has a Federal Tax Identification Number or Employer Identification Number - in this case, it`s referred to as an estate tax ID number. This estate tax ID will be needed to complete a number of estate-related tasks.
- Prepare Business Owner Information
- Apply for an Estate Tax ID (EIN) Number Online
- Apply for an Estate Tax ID (EIN) Number by Phone, Mail or Fax
- How Long Does It Take to Get a Tax ID Number for an Estate?
- Do I Need a Tax ID Number to Open an Estate Account?
- How Do I Establish an Estate Tax ID Number?
To get an estate tax ID (EIN), you'll need information about the original holder of the estate. Your first step will be to gather information about the individual who has passed, including:
- Your own Social Security number. In order to apply for an estate tax ID on behalf of a deceased individual, you should be named as either the administrator or the executor of the estate.
- The deceased's Social Security number. As an estate tax ID has to be acquired connected to a deceased individual, that individual has to be identified through their own Social Security number.
- The deceased's full name, birthdate and address. In order to identify the deceased reliably, you will need basic information about where they lived, when they were born and their full legal name.
- Information about the estate itself. You should know when the estate was created as well as the accounting year it is currently on - an accountant can help you with this information.
Once you have the information above, you can begin the process of applying for your estate of deceased tax ID.
Applying for an estate tax ID online is the easiest and fastest method to obtain your official tax ID. While an estate tax ID can also be applied for through phone, mail or fax, an online application is generally completed within a few minutes, and you can have your Tax ID Number emailed to you within one hour. When you need an estate tax ID, you often need it quickly. Applying by mail can take as long as six weeks, during which time an executor may not be able to open estate bank accounts or pay estate taxes. It is a good idea to apply for your Estate of Deceased Tax ID as soon as possible in order to be ready for required duties of the estate's administrator or executor.
An estate executor or administrator can call in to get more information about acquiring an estate tax ID, but ultimately the application will need to be submitted either online, through the mail or by fax. When an application is sent through the mail, it will take at least a few weeks to be processed. It's possible that an incorrect application will lead to a denial. If it does, you will need to start the process over again, correcting the issues on the application and waiting another few weeks to receive the estate tax ID. When an application is sent through fax machines, it will take up to four days to be processed. However, there are some issues with the reliability of the fax service. It isn't always possible to tell whether an application was received through a fax service, and it may take some time to receive requests for correction. Ultimately, though it is possible to apply for an estate tax ID through different channels, the online application process is generally much smoother.
It takes less than an hour to acquire a tax ID number when an application is submitted online. When an application is submitted via fax, it will take up to four days. When an application is submitted by mail, it will take up to six weeks. Applications may be delayed if they require corrections. If the application cannot be approved as it has been submitted, the application will be returned and the entirety of the process will need to begin again. With an online application, the turnaround time can be quite fast. With an application via the mail, an error may add weeks of waiting. When using a professional estate tax ID service, errors will be minimized and the application can be processed within an hour. This is the best way to acquire an estate tax ID quickly.
An estate bank account cannot be opened without a tax ID number. This is important as an estate account is the account that is used to take care of the estate itself. Maintenance costs, mortgage payments and insurance payments are examples of payments that might need to be taken out of an estate account until the estate has been fully distributed.
Tax ID numbers are used both to open estate bank accounts and to file estate taxes. Both of these things have to be done to reduce the potential for fines and penalties later on. Getting a tax ID number is one of the first things an executor or administrator of an estate should do because it isn't possible to close the estate without filing taxes.
To establish an estate tax ID number, first collect information about the deceased individual and their estate. Once you have the information that you need, you can apply for an estate tax ID number online. Your tax ID number will be delivered to you within an hour, after which time you can use it to open bank accounts and send in tax payments. As an administrator or executor of an estate, it's your responsibility to make sure that bills are paid on time and the estate is taken care of until it can be fully dissolved. Your first step will be to apply for an estate tax ID. Once you've acquired a tax ID number, you'll be able to open new bank accounts, pay bills and file taxes as needed.