Proposed Regulation Reduces User Fee for Estate Tax Closing Letter

The IRS has issued proposed regulations (REG-107459-24) and interim final regulations (T.D. 10031) reducing the user fee imposed on authorized persons requesting an estate tax closing letter from $67 to $56.

The interim final regulations took effect on May 20, 2025.

Glen Frost’s Takeaways:

In a minor but welcome administrative change, the IRS has lowered the fee for obtaining an estate tax closing letter to $56, effective as of May 20, 2025. This is a practical detail relevant to every practitioner who handles estate administration.

• A Routine Cost: This fee, which is processed through the Pay.gov portal, is a standard administrative cost incurred when wrapping up a taxable estate.
• A Cost-Based Adjustment: The fee reduction likely reflects a routine recalculation of the IRS's internal processing costs rather than a major policy shift. Still, any move to reduce administrative burdens on taxpayers and their advisors is a net positive.
• Practical Housekeeping: It's important for estate practitioners to update their client checklists, engagement letters, and any internal software to reflect the new, slightly lower amount to ensure accurate client billing.

This is a small, practical adjustment that affects the final step of a long and complex estate administration process, and practitioners should take note of the new amount.