Disclaimer: This article does not constitute legal advice and is for informational purposes only.
Detailed Answer
As executor (also called personal representative) of a South Carolina estate, you must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). The EIN serves as the estates taxpayer identification for filing federal returns, opening bank accounts, and paying taxes. Under South Carolina law, a personal representative has the authority to file all tax documents for the estate (see SC Code §62-2-714).
Step 1: Verify Appointment
Before you can apply for an EIN, you must obtain letters testamentary or letters of administration from the probate court. You initiate probate by filing a petition under SC Code §62-2-711. Once the court issues letters, you are officially appointed executor.
Step 2: Complete IRS Form SS-4
To request an EIN, complete IRS Form SS-4 (Application for Employer Identification Number). Key details include:
- Entity type: Check “Estate” and specify “Deceased Individual.”
- Decedent’s SSN and date of death.
- Executor’s name, address, and phone number.
You can apply:
- Online at the IRS EIN Online Assistant.
- By fax: Send Form SS-4 to the IRS fax number for estates listed in the instructions.
- By mail: Mail the completed SS-4 to the IRS address listed in the form instructions.
- By phone: If you have no legal residence or principal place of business in the U.S., call the IRS at the number provided on Form SS-4.
Step 3: Receive and Use the EIN
The IRS typically issues an EIN immediately online, within four business days by fax, or within four weeks by mail. Use this number to:
- File Form 1041, U.S. Income Tax Return for Estates and Trusts.
- Open an estate bank account.
- Pay estate taxes and distribute assets.
Helpful Hints
- Gather court documents before applying to avoid delays.
- Keep a copy of Form SS-4 and the IRS confirmation letter in the estate file.
- If the estate generates income exceeding $600 in a tax year, federal law generally requires an EIN (26 CFR §301.6109-2).
- Review IRS Publication 1635 for detailed SS-4 instructions.
- Consider professional tax advice if the estate has complex investments.