Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
When a person passes away in New Mexico, the court appoints a personal representative (commonly called an executor) to administer the decedent’s estate. One of the first administrative tasks is obtaining an Employer Identification Number (EIN) for the estate. The EIN functions like a Social Security number for the estate and is required for filing federal tax returns, opening bank accounts, and managing estate assets.
1. Confirm Your Appointment as Personal Representative
Before applying for an EIN, you must receive formal court authorization in the form of Letters Testamentary or Letters of Administration. Under New Mexico law, the probate court issues these letters once it approves the will or appoints an administrator in an intestate estate (NMSA 1978, §45-2-301). You will need a certified copy of these letters to prove your authority to the IRS and financial institutions.
Statute reference: NMSA 1978, Section 45-2-301.
2. Gather Required Information
- Legal name of the estate (usually “Estate of [Decedent’s Name]”).
- Decedent’s Social Security number and date of death.
- Executor’s name, mailing address, and Social Security number.
- Reason for applying (administration of decedent’s estate).
- Estimated date the estate will start operating (often the date of death).
3. Complete IRS Form SS-4
The IRS uses Form SS-4, Application for Employer Identification Number. You can apply online, by fax, or by mail:
- Online: The fastest method is via the IRS website. Go to IRS EIN Online Assistant. The system issues the EIN immediately upon completion.
- Fax: Fax the completed Form SS-4 to the appropriate IRS fax number listed in the instructions. You will receive the EIN by return fax within four business days.
- Mail: Mail Form SS-4 to the IRS address shown in the instructions. Processing by mail may take up to four weeks.
4. Record and Use the EIN
Once you receive the EIN, record it securely. Use this number when filing Form 1041 (U.S. Income Tax Return for Estates and Trusts), opening estate bank accounts, or handling investment accounts. The EIN remains with the estate until final distribution and closing under New Mexico law (NMSA 1978, §45-3-401).
Statute reference: NMSA 1978, Section 45-3-401.
Helpful Hints
- Apply promptly: Obtain the EIN soon after appointment to avoid delays in tax filings and asset management.
- Use accurate information: Mistakes on the SS-4 can delay processing or require corrections.
- Keep records: Maintain copies of the SS-4, appointment letters, and the EIN confirmation notice.
- Renew if needed: If the estate remains open for years, check IRS guidance for any required updates or disclosures.
- Seek professional guidance: A probate attorney or tax professional can ensure compliance with both New Mexico probate law and federal tax rules.