Jan182026
Probate Q&A Series

What should I do if someone tries to use the estate’s EIN to open accounts or file tax paperwork? – North Carolina

Short Answer

In North Carolina, a personal representative should treat misuse of an estate’s EIN like financial fraud: act quickly to stop new activity, document what happened, and notify the institutions and tax agencies involved. Practically, that usually means contacting the bank or brokerage fraud department, tightening control over estate mail and records, and notifying the IRS that a fiduciary relationship exists so IRS notices go to the personal representative. If a fraudulent tax filing is suspected, the next step is to report it through the IRS identity theft process and keep proof of all reports and responses.

Understanding the Problem

Under North Carolina probate administration, the question is what a personal representative can do when a third party attempts to use the estate’s Employer Identification Number (EIN) to open financial accounts or submit tax paperwork in the estate’s name. The decision point is whether the activity is only an attempted misuse (caught early) or whether an account or filing may already exist. Timing matters because bank fraud holds, IRS notices, and mail-forwarding problems can cause missed communications while the estate is being administered.

Apply the Law

In North Carolina, the personal representative is the fiduciary responsible for administering the estate, including handling estate funds and tax reporting tied to the estate’s EIN. The estate’s EIN is used to report income earned after death on estate accounts and on fiduciary income tax filings. If someone misuses that EIN, the practical legal goal is to (1) protect estate assets, (2) ensure tax agencies send notices to the correct fiduciary address, and (3) create a clear paper trail showing the personal representative acted promptly and reasonably.

Key Requirements

  • Control the estate’s financial channels: Confirm which accounts exist, freeze or close compromised accounts, and require the bank to add fraud alerts and stricter verification for any new account requests.
  • Control the estate’s tax communications: Make sure the IRS and North Carolina Department of Revenue have the correct fiduciary contact information so notices do not go to an old address.
  • Document and escalate appropriately: Keep written records of all calls, letters, and reports; escalate to law enforcement or regulators if a financial institution confirms an account was opened or a filing was submitted.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe a personal representative dealing with lost personal identification while trying to close an estate-related bank account and update mailing/forwarding information in North Carolina. That combination increases risk: if mail or statements go to the wrong place, a third party may obtain the estate’s EIN and try to open accounts or submit tax paperwork. The most important steps are to lock down the estate account immediately, ensure the IRS and financial institutions have the personal representative’s correct address, and create a written record showing the personal representative responded promptly to the attempted misuse.

Process & Timing

  1. Who acts: The personal representative (or the attorney acting with written authorization). Where: The bank or brokerage fraud department; the IRS; and, if needed, the North Carolina Department of Revenue. What: Ask the bank to place a fraud alert and require in-person verification or a notarized instruction for any changes; request written confirmation of any attempted account opening tied to the EIN; and update the estate mailing address on file. When: Immediately after learning of the attempted misuse.
  2. Lock down tax communications: File IRS Form 56 (Notice Concerning Fiduciary Relationship) so the IRS routes estate-related communications to the personal representative at the correct address. If a fraudulent federal filing is suspected, start the IRS identity theft reporting process and keep copies of everything submitted.
  3. Stabilize the estate’s banking and recordkeeping: If the estate account must be closed, request the bank’s written closing confirmation and a final statement showing a zero balance (or the transfer destination). If personal identification was lost, ask the bank what alternative verification it will accept for the personal representative and whether it will flag the profile for enhanced verification going forward.

Exceptions & Pitfalls

  • Using the wrong taxpayer ID: Estate accounts should use the estate’s EIN, not the decedent’s Social Security number. Mixing identifiers can create reporting confusion and make it harder to unwind fraudulent activity.
  • Mail-forwarding gaps: If estate mail goes to an old address, the personal representative may not learn about a fraudulent account or tax notice until deadlines are tight. Updating addresses with each institution and filing IRS Form 56 helps reduce this risk.
  • Closing an account too early: If checks or deposits are still pending, closing the estate account can create returned items and more opportunities for confusion or fraud. A safer approach is often to confirm all items have cleared and obtain a final statement showing the closing transaction.
  • Not getting written confirmation: Phone calls alone are hard to prove later. Written confirmation from the bank (fraud ticket number, closure letter, and final statement) and proof of IRS submissions can matter if questions arise during administration.

For more on handling estate accounts and administration steps, see the correct process for closing the decedent’s personal accounts and transferring the funds into the estate account and the final steps to finish probate and get the estate closed.

Conclusion

If someone attempts to use an estate’s EIN in North Carolina, the personal representative should act quickly to stop new account activity, secure estate mail and records, and ensure tax agencies communicate with the fiduciary at the correct address. Because the fiduciary is responsible for estate tax compliance, preventing and documenting EIN misuse is part of protecting the estate. The most practical next step is to file IRS Form 56 so IRS notices go to the personal representative and then follow the bank’s fraud process to freeze or close any compromised estate account.

Talk to a Probate Attorney

If a third party is trying to use an estate EIN to open accounts or submit tax paperwork while an estate is being administered, our firm has experienced attorneys who can help clarify the next steps, paperwork, and timelines. Call us today at [CONTACT NUMBER].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Probate Q&A Series

Author: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.