Final regulations: Process, user fee for requesting estate tax closing letter

A $67 user fee is to apply for the issuance of an estate tax closing letter.

A $67 user fee is to apply for the issuance of an estate tax closing letter.

The U.S. Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9957) concerning the process and a new user fee for authorized persons who wish to request the issuance of IRS Letter 627 (an estate tax closing letter).

As noted in the preamble to today’s release, the final regulations [PDF 227 KB] (as published in the Federal Register on September 28, 2021) adopt regulations that were proposed in late December 2020 “without significant change.” Accordingly, a $67 user fee is to apply for the issuance of an estate tax closing letter. 

The preamble to the final regulations also addresses who will receive an estate tax closing letter in response to a request and explains that specific instructions for requesting the estate tax closing letter and paying the user fee will be made available on the IRS website on or before 30 days after September 28, 2021.

As explained by the IRS in a related release—IR-2021-194—a closing letter is a service that confers a special benefit warranting a user fee because it can be helpful to an executor of an estate (but is not required by law). The IRS further noted that an estate has the option of obtaining from the IRS, free of charge, an account transcript showing certain information from the estate tax return, comparable to that found in a closing letter. Account transcripts can be used to confirm that an estate tax return examination has been completed and that the IRS file has been closed (the reason most often cited for requesting a closing letter).

 

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