What is an Estate of a Deceased Person?
When a person dies, his or her property and assets ultimately transfer to the surviving spouse or any named beneficiaries.
Before this can happen, however, the property and assets, such as cash, bank accounts, real estate, stocks, and shares of the deceased person, are treated as an “estate.
Estates are legally formed entities.
An estate of a deceased person is managed by a legal representative known as an executor or administrator.
Who Needs an Estate ID?
If you’re appointed the executor of an estate, you’ll need a tax ID for estate planning.
Also known as an Employer Identification Number (EIN), a tax ID allows the estate of a deceased person to perform the necessary functions in the probate process. These include:
- Buying, selling, and distributing property and assets in the probate process
- The collection and administration of all debts, liabilities, and payments
- Reporting the income the estate earns to the government for tax purposes
- Changing property names from the deceased person to the beneficiaries
- Opening a bank account in the name of the estate of the deceased person
As the estate takes temporary ownership of the properties and money of the deceased person, it needs to have an employer identification number.
Getting the estate ID shouldn’t be a struggle if you use GovDocFiling to get it and efficiently.
Why You Need a Tax ID for the Estate of a Deceased Person?
Some estates continue earning income from property and assets after the deceased person has passed. This could be from:
Income from stocks and bonds
Interest from savings accounts and CDs
Income from rental property
Interest from mutual funds and other investments
If this annual gross income exceeds $600, the estate needs to report these earnings through IRS Form 1041, which is for estate income tax return.
To file this estate income tax return, you’ll need to apply for a tax ID for the estate of the deceased person.
Why You May Need to File Estate Tax Return of a Deceased Person?
An estate of a deceased person will also need to file an estate tax return Form 706 imposed by Chapter 11 of the Internal Revenue Code. This return is mandatory if:
- The gross estate of the deceased person, including adjusted taxable gifts and specific gift tax exemptions exceed $12.06 million if the death date is in 2022 and $12.92 if the death date is in 2023.
- The estate of the deceased person makes the portability election. This means the estate has taken the option to transfer any deceased spousal unused exclusion (DSUE) amount to the surviving spouse.
Estate tax returns are due nine months after the date the death occurred.
Ensure compliance with this estate tax return law by applying for a tax ID for the estate of the deceased person using the form below.
What Happens if You Fail to Pay Estate Taxes of a Deceased Person?
If you’re the personal representative of a large estate with valuable assets and property, it’d be best to hire the services of a tax professional to ensure you’re compliant with all estate tax laws.
A tax pro can also help you find legal ways to reduce your tax liability.
Failing to file and pay required taxes can create problems for everyone involved:
- Failure by an executor to pay the taxes owed to the Internal Revenue Service can make them personally liable for these unpaid taxes.
- If a transfer of property to the surviving spouse and beneficiaries has occurred, the IRS could seek to recover taxes from the transferred property.
- The IRS could place a federal tax lien—a government legal claim against a property that owes them—on the estate, affecting the beneficiaries.
You can file your estate taxes on time if you get your tax ID for the estate of the deceased person quickly.
Apply online for a tax ID number for an estate of a deceased person using our online application services.
How to Apply for an Estate Tax ID Number?
The Internal Revenue Service issues tax ID numbers. You’ll need to file Form SS-4 to make an application. If you’re not the executor of the estate of the deceased person, it’s good to have the consent of the executor first.
Before making the application, collect information about the estate first. You’ll need it. This includes details like:
- The legal name of the deceased person and their social security number
- The legal name of the estate for which you’re requesting the tax ID.
- Information about the executor or administrator
- Whether you expect to have employees in the next 12 months
This application is complex and a single mistake can get your application rejected.
Using our services to get your estate tax ID for the estate of the deceased person ensures that you get it without any hassle.
What You Need to Know About Applying for an Estate Tax ID?
Losing a loved one is a heartbreaking experience. With funerals, medical expenses, and countless other tasks to manage, the last thing you want to deal with is confusing paperwork and the IRS.
Unfortunately, applying for the tax ID for the estate of a deceased person is a mandatory first step. Here are some important things to keep in mind:
- It’s important to fill in the information accurately because the IRS compares the information to its database.
- There’re specific instructions for filing Form SS-4 like filling in the deceased’s name followed by the word “Estate” if the estate has no legal name yet.
- If you apply for your estate tax ID by mail, it could take about four weeks to get the IRS number. This could cause a delay in your probate process.
- Some states like Connecticut and Rhode Island impose State estate taxes. Carry out proper research on the estate tax requirements of your state.
To avoid errors and inconsistencies that can cause unnecessary delays, we recommend using an expert like GovDocFiling to file for a tax ID for the estate of the deceased person.
Why Choose GovDocFiling?
Managing the estate of a loved one is hard enough and you shouldn’t have to worry about the application for the tax ID for the estate of the deceased as well.
Here’s what our estate tax ID application services offer.
Speed and Simplicity
At GovDocFiling, our online estate Tax ID application involves filling an intuitive, single-page online EIN application form. It takes only a few minutes to complete. It includes all the required fields contained on IRS Form SS-4, but every question is written in plain language.
Accuracy
Before processing your application with the IRS (Internal Revenue Service), our tax experts carefully review your estate’s tax ID number application for accuracy. This helps to minimize errors that might delay the approval process, and by extension, the probate process.
Fast Delivery
We guarantee same-day delivery. Most estate EIN applications are processed and the estate tax ID is sent via email within an hour. While some filing services charge $300-plus for rush delivery, our fast turnaround time won’t cost you extra.
Responsive Customer Support
Our customer support is always ready to help. We want you to be confident about the info you give for your estate tax ID application. Reach out 24/7 through email or call us any time between 7:00 am to 5:00 pm PST.
Estate planners and executors rely on our tax ID filing services, and you should too. Get your estate tax ID for the estate of a deceased person without delay.
Can You Cancel the Tax ID for the Estate of the Deceased?
You can’t cancel an estate’s tax ID number, even after you close probate. Once the IRS issues a tax ID to an entity, it becomes the entity’s permanent tax ID and can never be reassigned to another entity.
However, you can request a closing letter from the IRS once everything is settled. Note that you can only make the request:
- If nine months have passed since you filed theForm 706.
- 30 days after the examination is complete, if you are under examination.
- After the estate’s account transcript reads Transaction Code 421 (TC 421).
A closing letter indicates all issues of estate taxes are resolved and helps you close and settle probate.
You can make an application to the IRS to request a closing letter for a fee of $67.
Frequently Asked Questions
To obtain a tax ID number for the estate of a deceased person, an executor needs to file Form SS-4. It helps with the filing of the estate income tax return with the IRS.
An even easier way to get an estate tax ID number is to use an estate tax ID application by GovDocFiling.
We’ll handle all the paperwork for you, and you’ll get your estate’s tax ID number on the same day at no extra charge.
Yes. Estates are required to obtain an employer ID number, which is also known as a tax ID number.
This is because an estate is separate from the deceased person.
The tax ID for the estate of the deceased is necessary to file an estate income tax return if the estate’s annual gross revenue exceeds $600 and compute the estate tax return if it qualifies.
If an estate is in Florida, you can apply online to get a tax ID number for the estate of a deceased person by filing Form SS-4 with the IRS or by filling it out physically and mailing it in.
You can make the EIN application process easier for yourself by using our tax ID number filing services. Our simple online tax ID application form makes things easier and quicker for you.
An employer identification number (EIN) is the same as a tax ID number. It’s also called a tax identification number (TIN).
It’s a nine-digit number issued by the IRS for tax identification of businesses
Estates also use it to file their estate income tax return using IRS Form 1041 and to compute the estate tax return using IRS Form 706.
The IRS uses an EIN or tax ID number as an identification number for the tax accounts of businesses and estates.
As an estate, you’ll need an EIN to file an estate income tax return and other estate taxes. An EIN is also needed to open a bank account for the estate and conduct other tasks related to the probate process.
Make things easy for yourself by applying online for a tax ID of a deceased person using the form below.
Apply for a Tax ID for the Estate of a Deceased Person Today
We can’t eliminate the need to apply for a tax ID for the estate of a deceased person. But you can make the process infinitely easier.
Obtain an EIN with minimal delays and zero hassles using our online estate Tax ID application can help.