Detailed Answer
What is an EIN and why your estate needs one
When someone passes away in Rhode Island, the executor (also called the personal representative) must manage the decedent’s assets and file necessary tax returns. The Internal Revenue Service (IRS) requires a unique Employer Identification Number (EIN) to identify the estate for federal tax purposes. You cannot use the decedent’s Social Security number once probate begins; you need a separate EIN for the estate.
Step 1: Obtain Letters Testamentary from Rhode Island Probate Court
Before applying for an EIN, you must be officially appointed by the Rhode Island Probate Court. You’ll file a petition in the probate court where the decedent lived. Once the court approves, it issues Letters Testamentary (if there’s a will) or Letters of Administration (if there’s no will). You’ll need a certified copy of this document to apply. For more information, visit the Rhode Island Probate Courts website: https://www.courts.ri.gov/Courts/ProbateCourts/Pages/default.aspx
Step 2: Complete IRS Form SS-4
To get an EIN, fill out IRS Form SS-4, “Application for Employer Identification Number.” You’ll provide:
- The legal name and mailing address of the estate;
- The name and title of the executor as shown on Letters Testamentary;
- The date the decedent died;
- A reason for applying (check “Estate” on line 9a);
- The closing month of the tax year (usually December).
Download the form here: https://www.irs.gov/pub/irs-pdf/fss4.pdf
Step 3: Submit the Form to the IRS
– Online (Recommended): The fastest way. Go to the IRS EIN application page: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online. You’ll receive your EIN immediately upon completion.
– Fax: Fax the signed SS-4 to the IRS fax number listed in the instructions. You generally receive your EIN within four business days.
– Mail: Mail the signed SS-4 to the IRS address shown in the instructions. Processing can take four to six weeks.
– International Applicants: If the executor has no legal residence, address, or principal place of business in the U.S., call the IRS at (267) 941-1099 (not a toll-free number).
Step 4: Keep Your EIN Confirmation Letter
After processing, the IRS sends an EIN confirmation letter (Form CP 575). Keep this in your estate records. You’ll need it to open bank accounts, file Form 1041 (U.S. Income Tax Return for Estates and Trusts), and handle other tax matters.
Rhode Island Estate Tax Note
Rhode Island imposes an estate tax on larger estates (R.I. Gen. Laws § 44-1.2). If the gross estate exceeds the exemption threshold, you’ll also file a Rhode Island estate tax return with the Division of Taxation. Learn more: https://tax.ri.gov/
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney or tax professional for guidance tailored to your situation.
Helpful Hints
- Apply for the EIN as soon as you receive Letters Testamentary to avoid delays in estate administration.
- Use the online IRS application for immediate EIN issuance.
- Maintain a folder with certified court documents, the EIN confirmation letter, and estate tax filings.
- Note IRS deadlines: Form 1041 is due April 15 following the decedent’s death year (unless you request an extension).
- Check Rhode Island Division of Taxation deadlines if estate tax return is required.