The IRS is raising the user fee for estate tax closing letters, and the new amount applies to requests received after October 26, 2026. The dollar change is modest. It is still a good occasion to look at how the closing letter fits into estate administration and why executors should plan for it early.
What Is Changing
Under the IRS fee update, requests received from May 21, 2025, through October 26, 2026, carry a $56 fee. Requests received after that date cost $76. The fee applies based on when the IRS receives the request, not when the return was filed.
Executors who are ready to request a letter now may want to do so before the deadline. The savings are small, but there is no reason to pay more than necessary.
What a Closing Letter Does
The estate tax closing letter, known as IRS Letter 627, confirms that the IRS accepted the estate tax return as filed or that an examination has concluded. Many executors wait for this confirmation before making final distributions. That way, assets aren’t paid out while the estate’s federal tax position is still open.
The letter is often one of the last steps in estate administration, especially for estates that also need to close a probate case.
How to Request One
Requests are made through Pay.gov, according to the IRS closing letter FAQ. The IRS advises waiting at least nine months after filing Form 706 unless the estate’s account transcript already shows the return was accepted. If the return is under examination, the request should come at least 30 days after the examination ends.
Several other rules apply:
- The letter goes only to the executor listed on Form 706 and to authorized representatives.
- Co-executors do not receive a copy unless the estate’s records are updated first.
- An amended or supplemental return requires a new request and a new fee.
- An IRS account transcript can serve in place of the letter in many situations.
Planning Before a Return Is Filed
Not every estate owes tax. Many file Form 706 anyway, often to elect portability so a surviving spouse can use the deceased spouse’s unused exemption.
Portability and Trusts
Portability is not the only option for married couples. A bypass trust can hold assets for a surviving spouse while keeping those assets outside the spouse’s taxable estate.
Valuation and Basis
Values reported on the return also affect heirs. The step-up in basis generally relies on date-of-death values, so accurate appraisals help beneficiaries when they later sell inherited property.
Reducing the Taxable Estate
For larger estates, the planning done during life matters more than the paperwork after death. Annual gifts and other lifetime transfers can reduce the value that remains subject to tax.
Federal rules have shifted as well. Plans drafted under older law may need review following the OBBBA changes, which raised the exemption and removed the scheduled sunset.
Keeping the Estate on Schedule
Many executors wait for IRS confirmation of the estate tax return before finishing administration. Treating the filing date, the closing letter request, and final distributions as one timeline helps an executor avoid holding assets longer than needed or distributing them too soon.
For people still building their plans, this work starts earlier. Reviewing gifts, trusts, and portability elections with an estate tax planning lawyer during life gives your executor a clearer path later.
The attorneys at Estate Planning Pros work with executors filing an estate tax return and with individuals reviewing their own plans. If either describes you, contact us to meet with an estate tax planning lawyer who can assess where your estate stands today.