The IRS issued interim final and proposed regulations on Friday, May 16, lowering the user fee for the service to issue an estate tax closing letter from $67 to $56.
An estate tax closing letter (Letter 627) confirms that the IRS has accepted an estate tax return (generally, Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return) as filed or after the IRS has made an adjustment to which the estate has agreed (see Notice 2017-12).
The receipt of an estate tax closing letter generally indicates that, for purposes of determining the estate tax liability of the decedent’s estate, the estate tax return’s IRS examination is closed. An estate tax closing letter, however, is not a formal closing agreement.
The $56 user fee applies to requests for estate tax closing letters received by the IRS after the regulations are published in the Federal Register. Read more.