Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
In Illinois, an executor must obtain an Employer Identification Number (EIN) for a decedent’s estate to handle federal tax filings, open estate bank accounts, and report income or gains. The process involves two main steps: securing Letters Testamentary and completing the IRS EIN application.
1. Secure Letters Testamentary
Before applying for an EIN, the executor must be officially appointed by the court. Under the Illinois Probate Act (755 ILCS 5/3-1), the circuit court issues Letters Testamentary to the named executor after validating the will and administering initial estate procedures. These letters confirm your authority to act on behalf of the estate. You can view the statute here: 755 ILCS 5/3-1.
2. Complete IRS Form SS-4
After obtaining Letters Testamentary, apply for an EIN using IRS Form SS-4. You can choose one of four methods:
- Online: The fastest option is the IRS EIN Assistant at IRS.gov EIN Online Application. You receive the EIN immediately upon verification.
- By Fax: Fax your completed Form SS-4 to the appropriate IRS fax number (provided in the form instructions). You’ll receive the EIN via fax in about four business days.
- By Mail: Mail Form SS-4 to the address listed in the instructions. Processing takes about four weeks.
- By Phone (International Applicants only): If you have no legal residence in the U.S., you may call the IRS to obtain an EIN.
When completing Form SS-4, include:
- Estate name (e.g., “Estate of Jane Doe”).
- Executor’s full name and Social Security Number.
- Decedent’s Social Security Number and date of death.
- Estate mailing address and county in Illinois.
- Estimated date the estate’s first tax return is required.
Helpful Hints
- Keep certified copies of Letters Testamentary on hand when applying.
- Use the exact estate name shown on the will and Letters Testamentary.
- Double-check all social security numbers and dates to avoid processing delays.
- Save the IRS EIN Assignment Letter (CP 575) for your records.
- Inform banks and financial institutions of the EIN when opening estate accounts.
- Consult IRS Publication 559 for estate and trust tax guidelines.