The new Employer Identification Number (EIN), a unique tax identification number, is primarily required to establish settlement bank accounts and file tax returns for the Estate during the settlement process.

Settlement-specific bank accounts can be utilized to pay expenses and collect proceeds during the settlement process. For instance, paying utilities for a property or collecting proceeds from an Estate sale or auction. It is crucial to initiate this process early to ensure transparent, comprehensive, and accurate accounting throughout the settlement process. Co-mingling funds in personal or pre-existing Estate accounts is strongly discouraged.

Taxes may need to be filed over multiple years depending on the duration of the settlement process. At a minimum, there will always be at least one final tax filing for all activities conducted during the current tax year. Furthermore, Form 56 should be submitted to the Internal Revenue Service (IRS) at both the commencement and conclusion of the settlement process.