Disclaimer: This information is for educational purposes only and does not constitute legal or tax advice. Consult a qualified attorney or tax professional for guidance specific to your situation.
Detailed Answer
When a person passes away, their estate becomes a separate taxpayer for federal tax purposes. An executor (also called a personal representative in Delaware) must obtain an Employer Identification Number (EIN) from the IRS to file the estate’s income tax returns, pay debts, and distribute assets. Below are the key steps under Delaware law and IRS requirements:
1. Confirm Appointment as Executor
Before applying for an EIN, ensure the Delaware Court of Chancery or Superior Court has issued Letters Testamentary or Letters of Administration formally appointing you. Under 12 Del. C. § 5703, a personal representative has authority to manage estate affairs, including tax filings. You may need certified copies of your letters to verify your status to financial institutions or the IRS.
2. Gather Required Information
- Estate’s legal name (typically “The Estate of [Decedent’s Full Name]”).
- Decedent’s Social Security Number and date of death.
- Executor’s name, mailing address, and Social Security Number.
- Reason for applying (check Box 9a on IRS Form SS-4: “Estate” or “Trust”).
- Estate’s closing month (usually December unless otherwise elected).
3. Complete IRS Form SS-4
Form SS-4 is the Application for Employer Identification Number. You can:
- Apply online at the IRS site: IRS EIN Online Application. You will receive the EIN immediately upon verification.
- Mail or fax the completed Form SS-4 to the IRS location listed at the top of the form. Processing typically takes 4–6 weeks.
4. Use and Maintain the EIN
Once you receive the EIN, use it on all estate tax returns (IRS Form 1041) and to open estate bank accounts. Retain records of the EIN issuance and correspondence. For state inheritance tax or fiduciary income tax filings, use this EIN as well.
Relevant Statutes and Resources
- Delaware Personal Representative Powers: 12 Del. C. § 5703
- IRS Form SS-4 Instructions: iss4.pdf
Helpful Hints
- Keep certified copies of your Letters Testamentary on hand to prove your authority.
- Apply online for fastest EIN issuance—no mailing delays.
- Use a dedicated email and mailing address to avoid mixing estate correspondence with personal mail.
- Note critical deadlines for filing Form 1041 (due April 15 for calendar-year estates).
- Consider consulting a probate attorney or tax advisor if the estate has complex assets or multiple beneficiaries.