Bloomberg Tax, Daily Tax Report (“DTR”): Breaking News – Final IRS Rules Establish Fee for Estate Tax Closing Letters (September 27, 2021)

Bloomberg Tax, Daily Tax Report reports that the IRS established a fee for estate tax closing letters. The summary is as follows:

Individuals requesting letters to confirm the IRS has accepted an estate tax return will be required to pay a $67 fee under new final regulations.

The rules (TD 9957, RIN 1545-BP75), released Sept. 27, follow the IRS’s 2015 decision to stop issuing the letters, known as estate tax closing letters, automatically.

Estate executors, local probate courts, state tax departments, and others often rely on the letters, which include useful information such as the net estate tax amount, for confirmation that the IRS has completed its examination of a return. The IRS has said the fee will help the government recover the costs it incurs providing estate tax closing letters. The charge is appropriate given the agency’s resource constraints and the convenience the letters afford to the individuals requesting them, the IRS said in the proposed version of the rules.

See the DTR by clicking here (subscription required).

Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal