Disclaimer: This content is for informational purposes and does not constitute legal advice.
Detailed Answer: Applying for an EIN as an Executor in Montana
An executor (also called a personal representative) needs an Employer Identification Number (EIN) to file federal tax returns for the estate, open estate bank accounts, and manage financial affairs. An EIN is a federal tax ID issued by the Internal Revenue Service (IRS). Montana does not issue a separate state EIN, but the executor uses the federal EIN for any state filings. Under Mont. Code Ann. 72-3-813 (section 813), the personal representative has authority to take actions on behalf of the estate, including obtaining tax identification numbers.
Who Needs an EIN?
If the estate will have any of the following, you must obtain an EIN:
- Gross income of $600 or more from interest, dividends, or rent;
- Employment taxes (if the estate hires household or other employees);
- Sale of estate property requiring a federal fiduciary income tax return (Form 1041).
How to Apply for an EIN
- Gather Information: Executor’s name and Social Security number (SSN), decedent’s name, SSN or Individual Taxpayer Identification Number (ITIN), date of death, and the estate’s mailing address.
- Apply Online (Preferred): Use the IRS EIN Assistant: IRS EIN Online Application. You’ll receive your EIN immediately.
- Apply by Fax: Complete IRS Form SS-4 (download at https://www.irs.gov/pub/irs-pdf/fss4.pdf) and fax to the IRS. If you include a return fax number, you’ll receive the EIN within four business days.
- Apply by Mail: Mail the completed Form SS-4 to the address listed in the form instructions. Processing typically takes about four weeks.
- International Applications: If the executor does not have an SSN or ITIN, call the IRS at 267-941-1099 (not toll-free) to apply by phone.
After You Receive the EIN
- Open an estate bank account in the estate’s name using the EIN.
- File federal Form 1041 (U.S. Income Tax Return for Estates and Trusts) and any required Montana returns.
- Use the EIN on all federal and state estate-related filings and correspondence.
Helpful Hints
- Keep the IRS confirmation letter (Form CP 575) in your estate records.
- Use the estate’s legal name exactly as it appears in the probate petition.
- Verify whether co-executors need to apply jointly for the EIN.
- Review Montana Department of Revenue guidelines for estate tax requirements.
- Maintain detailed records of all estate income and expenses for tax reporting.