Detailed Answer
An executor (also called a personal representative) must obtain an Employer Identification Number (EIN) from the Internal Revenue Service to open estate bank accounts, file federal income tax returns, and handle other financial matters on behalf of the estate. In South Dakota, there is no state estate tax, but federal law requires a separate tax ID for each decedent’s estate (Internal Revenue Code ). Here’s how to apply:
- Confirm the Need for an EIN
If the estate receives income after the decedent’s death (rental income, dividends) or the estate will be open longer than one year, you must obtain an EIN and file IRS Form 1041, U.S. Income Tax Return for Estates and Trusts. - Gather Required Information
You will need:- Decedent’s name, Social Security number, and date of death
- Executor’s name, mailing address, and SSN or ITIN
- The estate’s legal name (e.g., “Estate of Jane Doe”)
- Complete IRS Form SS-4
Visit the IRS website and fill out the Application for Employer Identification Number (Form SS-4). You can complete this form online or on paper. Online applications receive an EIN immediately upon submission.
Apply for an EIN Online - Submit the Application
- Online: Available Monday–Friday, 7 a.m. to 10 p.m. Eastern.
- Fax: Fax the completed Form SS-4 to the IRS fax number listed in the form instructions. You’ll receive the EIN by fax within four business days.
- Mail: Mail Form SS-4 to the address in the instructions. Processing takes about four weeks.
- Record and Use the EIN
Once you receive the EIN, use it to open an estate bank account, file Form 1041 if required, and report income or gains from estate assets. Maintain a copy of the SS-4 confirmation letter in the estate records.
Helpful Hints
- Apply online for the fastest EIN assignment and immediate confirmation.
- Keep a dedicated file for all estate financial documents, including the EIN confirmation.
- Consult IRS Publication 559 for guidance on fiduciary tax responsibilities.
- Review South Dakota’s probate code (SDCL Title 29A) for executor duties: SDCL 29A-3-703.
- If you’re unsure about filing federal estate tax returns or fiduciary accounting, consider hiring a qualified attorney or accountant.
Disclaimer: This article provides general information about South Dakota probate procedures and federal tax requirements. It does not constitute legal advice. Consult a licensed attorney for advice specific to your situation.