Detailed Answer
An estate is a separate legal and tax entity that arises when someone passes away. Under Nebraska law, the executor (referred to as a personal representative) must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) to file tax returns and manage estate finances. You typically need an EIN when the estate earns income after the decedent’s death, when you open a bank account in the estate’s name, or when you file federal Form 1041 (U.S. Income Tax Return for Estates and Trusts).
Step One: Confirm the Need for an EIN
Under Nebraska’s Probate Code, Neb. Rev. Stat. § 30-2460, a personal representative must handle all tax matters for the estate. If the estate will have post-death income or require a separate bank account, you need an EIN. Even if no income arises, banks often require an EIN to distinguish estate assets from personal funds.
Step Two: Gather Required Information
- Decedent’s full legal name and Social Security number.
- Date of death.
- Executor’s name, Social Security number, and mailing address.
- Legal name of the estate (typically “Estate of [Decedent’s Name]”).
- Estate’s mailing address.
Step Three: Complete IRS Form SS-4
Visit the IRS website to access Form SS-4: IRS Form SS-4. Follow the instructions carefully, selecting “Estate” as the responsible party type. Provide accurate information to avoid delays.
Step Four: Submit Your Application
You can apply for an EIN in four ways:
- Online: Use the IRS’s online EIN application at Apply for an EIN Online. This is the fastest method; you receive your EIN immediately.
- Fax: Fax the completed Form SS-4 to the IRS fax number listed in the instructions. The IRS generally returns EINs within four business days.
- Mail: Mail Form SS-4 to the IRS address provided in the instructions. Processing can take up to four weeks.
- Phone (International Applicants): If the executor’s principal business or residence is outside the U.S., call the IRS at 267-941-1099 to apply by phone.
Step Five: Use Your EIN
Once you have the EIN, use it when:
- Filing the federal estate tax return (Form 1041) if the estate’s gross income exceeds the filing threshold.
- Opening estate bank accounts in Nebraska.
- Filing any required Nebraska inheritance tax returns under Neb. Rev. Stat. § 77-1801 et seq..
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified Nebraska probate attorney for guidance specific to your situation.
Helpful Hints
- Apply online to receive your EIN immediately.
- Double-check all Social Security numbers and dates to prevent processing delays.
- Use the estate’s legal name exactly as it appears in the probate court order.
- Keep a copy of your EIN confirmation letter for your estate records.
- File Nebraska inheritance tax returns within nine months of the decedent’s date of death to avoid penalties.