We believe that your customer would need to obtain an employer identification number, also known as a taxpayer identification number (EIN or TIN), for the estate, even if an estate qualifies as a small estate under Illinois law. Under federal law, the IRS requires that every estate obtain an EIN, no matter the size of the estate. The IRS’s Publication 559, written for estate administrators, states that their first responsibility is always to obtain an EIN for the estate. Publication 559, Identification Number. In that section, it also provides instructions on obtaining an EIN, and it may be helpful to provide your customer with a copy of the publication.

Further, the IRS penalizes estate administrators and payors to the estate (such as a financial institution paying interest on an estate account) that incorrectly continue to use an individual’s social security number (SSN) after the individual has died. For example, if your organization issues a Form 1099 for an estate account, IRS Publication 559 states that “[a]fter a decedent’s death, Forms 1099 must reflect the identification number of the estate or beneficiary to whom the amounts are payable.” Publication 559, Penalty.