Disclaimer: This article is for general informational purposes and is not legal advice. Consult a qualified attorney to discuss your specific situation.
Detailed Answer
When a loved one passes and leaves an estate, the executor (also called a personal representative in New York) must obtain an Employer Identification Number (EIN) from the IRS to manage estate assets, file tax returns, and open bank accounts in the estate’s name. Under New York law, you first secure your authority in Surrogate’s Court. Then you apply to the IRS for an EIN.
1. Secure Letters Testamentary or Letters of Administration
In New York, an executor named in a will petitions the Surrogate’s Court for Letters Testamentary. If no valid will exists, an interested party petitions for Letters of Administration. The relevant statutes include:
- EPTL § 3-1.1: Appointment of executor or administrator (nysenate.gov/Laws/EPT/3-1.1).
- EPTL § 3-2.3: Issuance and content of letters (nysenate.gov/Laws/EPT/3-2.3).
Once the court issues your letters, you have legal authority to act on behalf of the estate.
2. Complete IRS Form SS-4
Form SS-4 is the application for an EIN. You must provide:
- The estate’s legal name (“Estate of [Decedent’s Name]”).
- The estate’s mailing address.
- Your name and Social Security number as the executor.
- The date of death and type of entity (estate).
You have three filing options:
- Online: Apply immediately at IRS.gov (Apply for an EIN Online).
- Fax: Fax the completed SS-4 to the IRS office listed in the instructions for your region.
- Mail: Mail the form to the IRS address provided in the SS-4 instructions.
Once processed, the IRS issues the EIN by return fax or mail. There is no fee for obtaining an EIN.
3. Use the EIN to Administer the Estate
After you receive the EIN, you can:
- Open an estate bank account.
- File the decedent’s final individual tax return (Form 1040) and the estate’s income tax return (Form 1041).
- Report asset sales, distributions to beneficiaries, and any estate taxes owed.
Helpful Hints
- Keep a certified copy of Letters Testamentary on file and provide a bank-certified copy when opening the estate account.
- Confirm the decedent’s federal tax status to determine which tax years require filing.
- Gather the decedent’s Social Security number and date of death before completing Form SS-4.
- Use a dedicated email account when applying online for faster IRS notifications.
- Note that online EIN applications are available Monday–Friday, 7 a.m. to 10 p.m. Eastern time.
- Keep all IRS correspondence in a single file for easy reference.
- If you need help with complex assets (business interests, foreign property), consider hiring a tax professional.
- Check the IRS website periodically for updates to Form SS-4 and filing procedures.