Is Nothing Free? Estate Tax Closing Letters Will Now Cost You

IRS and Treasury released final regulations that establish a new user fee of $67 for persons requesting the issuance of an estate tax closing letter (formerly known as IRS Letter 627). The final regulations adopt, without significant change, proposed regulations issued in late December 2020. 85 Fed. Reg. 86,871 (Dec. 31, 2020). The IRS and Treasury justify charging estates $67 to cover such letters’ costs, because issuing the letters qualifies as a service providing a special benefit to estates. Although obtaining a closing letter from the IRS can be beneficial to an executor of an estate, it is also a legal requirement. The IRS said it would begin charging the fee on October 28, 2021. Closing letter requests must be made using Pay.gov. 86 Fed. Reg. 53,539 (Sept. 28, 2021).

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