Are you in a situation where you are naming the estate of a deceased individual or individual? When you are handling an estate, you want to be sure you are doing everything properly from a tax administration perspective. The estate of deceased, just like any other organization, is going to need its employer identification number. You will want to take the time to get a full understanding of the application process starts to finish. By taking the time to understand the process, you can obtain the Tax ID (EIN) number for an estate of deceased so it is done timely and ready for tax filing purposes.
Steps to Get a Tax ID (EIN) for an Estate of Deceased
- Preparation of Mandatory Information
- Applying Online for the EIN
- Applying via Fax, Mail, or Telephone
- How Long it Takes to Get the EIN
- Why The Estate of Deceased Needs an EIN
There will be some information you need to gather before you can obtain an employer identification number for the estate of the deceased. This is going to include some information on the estate itself, as well as the naming of an individual that will be known as the responsible party. The information about the estate itself will be basic details such as the name of the estate, date of formation, etc. It is the responsible party where you will want to spend time to be sure you gather up the necessary information.
The responsible party will be representing the estate of the deceased to the Internal Revenue Service. The responsible party must be one individual. That individual also must have a Social Security Number or Individual Taxpayer Identification Number. Information on the responsible party you will need will include:
- The full legal name of the responsible party
- The date of birth of the responsible party
- The principal address of the individual
- The Social Security Number or Individual Taxpayer Identification Number
Once you have this mandatory information you can move forward with the remainder of the application.
The estate of the deceased can get a lot of benefits by using the online application method for the employer identification number. The Tax ID (EIN) number is something you can quickly obtain right online when you follow this particular application process. These benefits include:
- The ability to be sure you have the latest form to apply off of instantly, right online.
- The opportunity to complete the form within about fifteen minutes.
- You can get assistance from a Tax ID service provider in filling out the form.
- You will also get an immediate response from the Internal Revenue Service as to whether or not they accept the application. If you have to send a follow-up you can do so immediately.
When you fill out the application online, it means you will get efficient results.
The other mechanisms you can use to obtain an employer identification number for your estate of deceased is to apply through one of the other methods, including mail, fax, or telephone.
- The mail application method is going to require you to get your hands on the physical form for completion. Be sure it is the most up to date. Once you have it, complete it and then mail it off to the Internal Revenue Service for processing the information and generation of the EIN.
- The fax method and the mail methods are quite similar in their execution. For both, you need the physical form and you need to detail it with all of the necessary and mandatory information. From there, you are then putting it into a fax machine to send it off to the IRS.
- The telephone method will start with a phone call to the Internal Revenue Service. Once they get the call and start the process, they may request supporting documentation you will have to mail or fax in.
Once you complete these steps, with the help of a Tax ID service provider, it comes down to a matter of just waiting it out before you end up with your complete employer identification number in-hand.
Just how long can you expect it to take to get your employer identification number? The length of time for processing of the EIN is going to be driven by your method of applying originally.
- The online application method is rapid when you compare it to the mail and fax methods. The online application method is something you can fill out in fifteen minutes and get your Tax ID (EIN) back to you in less than one hour.
- The fax method, by the time you fax over the form and then receive it back with your EIN, will usually take five to seven business days.
- The mail method is the longest by far taking anywhere from five weeks to much longer, depending on the speed of the postal service and backlogs at the IRS.
As you can see, processing times vary but the online application method is by far the fastest.
Why does the estate of the deceased need an employer identification number? The biggest reason is for tax administration purposes. You want to track all assets and such in the estate under one identifier. If you have bank accounts with assets earning interest, all that should flow through the estate using the employer identification number. With the Tax ID (EIN) you can also properly file tax returns in the name of the estate of the deceased.
The Internal Revenue Service will require a tax return filing from the estate of the deceased. To do this filing, you need the estate of the deceased to get an employer identification number. Obtaining the number is all about understanding the application process. You need to do your part to gather the mandatory information about the estate of the deceased. From there, work with a Tax ID service provider to help you with either applying online, by mail, or by the fax machine.