Estate Tax for Non-Resident Alien: IRS Form 706-NA and the $60,000 Threshold

When a non-resident alien dies owning assets in the United States — a bank account, real estate, stock in a US corporation — the IRS taxes those assets at the same estate tax rates that apply to US citizens. But the exemption is radically different: $60,000 instead of the $15 million exemption that US citizens receive in 2026.

For a Mexican national who died while working in the US and left behind a bank account with $80,000 and a car, the estate owes a federal filing. Here's how it works.

The $60,000 Exemption

US citizens and permanent residents get a unified credit that shelters $15 million of estate value from federal estate tax in 2026. Non-resident aliens get a flat $60,000 exemption. Every dollar of US-situated assets above that threshold is potentially taxable.

US-situated assets include:

• Bank accounts at US institutions (unless they're deposit-only accounts earning no interest — those are exempt)
• Real estate located in the US
• Stock in US corporations
• Tangible personal property physically located in the US (vehicles, jewelry, equipment)

Assets not situated in the US — Mexican bank accounts, Mexican real estate, foreign stocks — are not included.

IRS Form 706-NA

If the decedent's US-situated gross estate exceeds $60,000, the executor must file IRS Form 706-NA (United States Estate Tax Return for a Nonresident Not a Citizen of the United States). The return is due nine months after the date of death, though a six-month extension is available.

The form requires a detailed inventory of US-situated assets, their fair market value at the date of death, and any allowable deductions. The estate tax rates are the same graduated rates that apply to US citizens — starting at 18% and reaching 40% for amounts over $1 million.

The Mexico-US tax treaty can modify these rules. Under the treaty, the $60,000 exemption may be prorated upward based on the ratio of worldwide assets situated in the US. If only a small fraction of the deceased's worldwide wealth is in the US, the effective exemption can be significantly higher. This requires reporting worldwide assets on the return to claim the treaty benefit.

Getting an EIN Without a Social Security Number

Before the executor can file Form 706-NA or open estate bank accounts, they need an Employer Identification Number (EIN) for the estate. The standard online application at irs.gov requires the responsible party to have a US Social Security Number or Individual Taxpayer Identification Number.

When the executor is a foreign national without either, the standard path is:

1. Complete IRS Form SS-4 (Application for Employer Identification Number)
2. Fax it to the IRS at (304) 707-9471 when faxing from outside the US, or (855) 215-1627 when faxing from within the US without a US legal residence or principal office
3. Wait for a return fax — generally within 4 business days

The phone option (267-941-1099, international callers) is available during IRS business hours. The online application will reject a foreign-only responsible party.

What US Banks Require Before Releasing Funds

US banks will not release frozen funds to foreign heirs without:

1. Certified death certificate (usually with apostille for identity verification)
2. Letters testamentary or letters of administration — issued by a US probate court authorizing the executor to act on behalf of the estate
3. IRS estate tax closing letter or Form 706-NA filing receipt — proof that the estate has met its federal tax obligations
4. Payable on Death (POD) verification — if the account had a designated beneficiary, that person can bypass probate by presenting the death certificate and their ID directly to the bank

The POD beneficiary path is the fastest shortcut. Without it, foreign heirs may need a small-estate procedure or a US probate court, and most states prohibit non-resident aliens from serving as sole executor — requiring the family to appoint a US-resident co-executor or hire a probate attorney.

The Practical Impact for Mexican Families

For a typical Mexican worker who died in the US with a modest bank account, a car, and personal effects, the $60,000 exemption often covers the estate value. But the filing obligation may still exist depending on the bank's compliance requirements, and banks routinely demand proof of tax clearance before releasing funds regardless of estate size.

The cost of compliance — hiring a US tax professional to prepare Form 706-NA, getting an EIN, and coordinating with probate — can easily exceed the value of small estates. Families should calculate whether the assets justify the administrative cost before committing to the full probate path.

The Mexican National Dies in the US — Family Guide includes the complete IRS filing checklist, the fax-based EIN application walkthrough, and the bank release documentation template.