IRS Suggests Using Transcripts in Lieu of Estate Tax Closing Letter

Charle Rubin of Gutter Chaves Josepher Rubin Forman Fleisher Miller P.A., writes about a new IRS directive discontinuing the automatic issuing of closing letters.  The new directive also requires taxpayers to wait at least four months  from the filing of an estate tax return to requesting a closing letter, suggesting that a tax transcript can be used as an alternative method to determine if the IRS has accepted the return.  The post begins as follows:

A federal estate tax closing letter shows that the IRS has either accepted an estate tax return as filed, or after audit final adjustments have been agreed to. They do not close the statute of limitations, but provide comfort to executors that they can make distributions or pay creditors with little likelihood of IRS review of the estate tax computations.

In the past, closing letters were automatically issued. Earlier this year the IRS indicated that would no longer happen – taxpayers now need to specifically request a closing letter, and must wait at least 4 months from filing of the estate tax return before making the request.

Click here to read the entire blog post.

Posted by Logan Davis, Associate Editor, Wealth Strategies Journal.

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