The IRS has issued proposed regulations that would increase the user fee for an estate tax closing letter from $56 to $76. (Preamble to Prop Reg REG-103193-26, 6/2/2026)
Estate Tax Closing Letters
An executor, administrator, or other person in possession of estate property can file an application for determination of the estate tax and discharge from personal liability. The application should be filed with the district or service center director where the estate tax return is required to be filed.
An estate tax closing letter, IRS Letter 627, confirms the estate tax return has been accepted by IRS as filed or has been accepted after an IRS adjustment with which the estate agrees.
The IRS established a user fee of $67 for estate tax closing letters in 2021 (TD 9957). In 2025, following a biennial review, the IRS issued rules (TD 10031 and TD 10038) that reduced the fee to the current $56.
How the IRS Calculated the New Fee
The IRS announced its intention to increase the fee to $76 in a June 2 proposed rule. The agency explains that the proposed fee increase is the result of the most recent biennial review of the costs associated with providing the service.
The proposed fee increase is based on a 2025 cost model that determined the full cost of issuing an estate tax closing letter is now $76.
The agency’s review determined that the total cost to run the program is $615,593. This figure includes direct and indirect costs for:
- Request processing labor and benefits ($374,032)
- Quality assurance review labor and benefits ($3,818)
- Overhead, such as rent, IT, and administration ($237,743)
The $76 fee was calculated by dividing the total program cost ($615,593) by the average annual number of requests (8,053).
Comments and Applicability Date
Comments on the proposed rule and requests for a public hearing are due July 2, 2026. Comments can be submitted electronically via the Federal eRulemaking Portal at www.regulations.gov (indicate IRS and REG-103193-26).
If the rule is finalized as proposed, the new $76 fee will apply to requests for an estate tax closing letter received by the IRS beginning 30 days after final rule publication.
For more on the use of estate tax closing letters, see Checkpoint’s Federal Tax Coordinator 2d ¶ T-4511.
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