So that you can pay taxes for the estate. It allows the IRS and state entities to insure the proper taxes are collected. It also allows the executor to open bank accounts and keep them isolated from personal assets.
You need an EIN number for an estate to identify the estate as a separate entity for tax purposes and to facilitate the reporting of income and assets of the estate to the IRS.
An EIN number is needed for an estate to identify it for tax purposes and to facilitate the reporting of income and assets to the IRS.
Technically, your mother's estate need a tax id number. It is called an Employer Identification Number (EIN). The estate needs an EIN even if it isn't going to be an employer. You can apply online at the following link: http://www.irs.gov/businesses/small/article/0,,id=102767,00.html
No, an Estate and a Trust cannot use the same EIN (Employer Identification Number). Each entity must have its own unique EIN for tax and legal purposes.
When you set up a trust, you need to open an estate bank account for the money. You need to obtain an EIN number from the IRS. Warning - you dont need to pay for this service through other website providers.
To obtain an IRS form for an Estate Employer Identification Number (EIN), you can visit the IRS website and download Form SS-4. This form is used to apply for an EIN for an estate. You can also call the IRS at 1-800-829-4933 to request a copy of the form to be mailed to you.
For your business, you will need an Employer Identification Number (EIN) from the IRS. This number is used for tax purposes and to identify your business entity.
If you have an LLC and no employees, you may not need an Employer Identification Number (EIN) from the IRS. However, it can still be beneficial to get an EIN for banking and tax purposes.
To apply for an Employer Identification Number (EIN), you will need to provide your business name, address, and type of business entity. You will also need a Social Security Number or Individual Taxpayer Identification Number of the responsible party.
To open a bank account with an EIN number, you will need to contact the bank of your choice and provide them with your EIN number, along with any other required documentation such as identification and business formation documents. The bank will guide you through the process of opening the account specifically for your business using the EIN number.
Check this list from the IRS. If you can answer "yes" to any of them, you need an EIN. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Do-You-Need-an-EIN%3F
Yes, as a sole proprietorship, you are not required to have an Employer Identification Number (EIN) unless you have employees or meet other specific criteria.