IRS proposes increase in cost of estate tax closing letter

The cost of an estate tax closing letter (also referred to as IRS Letter 627) will increase from $56 to $76 if proposed regulations issued Monday by the IRS (REG-103193-26) become final.

The IRS set the $56 user fee on Dec. 1, 2025. Also in 2025, the IRS conducted a biennial review of the estate tax closing letter user fee and determined that the full cost of issuing estate tax closing letters to authorized persons is $76, an increase of almost 36%.

Issuing an estate tax closing letter is a service that confers special benefits to authorized persons requesting such letters beyond those accruing to the general public, the IRS said. And under the Independent Offices Appropriations Act of 1952, services that an agency provides should be self-sustaining to the extent possible.

The IRS, in its 2025 biennial review, determined the full yearly cost (direct and indirect costs) of the estate tax closing letter program to be $615,593, with the estimated annual number of requests to be 8,053, which brought the cost per request to $76.

The regulations are proposed to apply to requests for an estate tax closing letter received by the IRS on or after the date that is 30 days after the date final regulations are published in the Federal Register.

Before the proposed regulations are adopted as final regulations, the IRS said it will consider timely comments submitted to Treasury and the IRS. A public hearing will be scheduled if requested in writing by any person who submits timely written or electronic comments.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.