An estate tax closing letter is a confirmation that the Internal Revenue Service will provide to the fiduciary of an estate after they have finishing reviewing and have accepted a Form 706. According to the IRS website, a fiduciary should wait at least nine months after the filing of the Form 706 to request the Closing Letter. Closing Letters will only be issued upon request by the fiduciary or their representative.
The following information must be provided with the request:
- Decedent’s name, Social Security number and date of death.
- Requester’s name, address and substantiation the requester is an authorized individual such as an Executor, Trustee or Power of Attorney.
- A copy of the will, if any.
- If the requester is an Executor, provide a copy of the Letters Testamentary issued by the court, if issued.
- If the requester is a Trustee, provide a Certificate of Trust or similar documentation.
- If the requester holds an IRS Power of Attorney (POA), provide the Centralized Authorization File (CAF) number.
The IRS has established new restrictions due to the declared national emergency and is now only accepting requests for estate tax closing letters by facsimile at either of the following two numbers:
There are proposed regulations that have not been finalized that will establish a new requesting process. If these regulations pass there will be a $67 fee applied to each closing letter request. See REG-114615-16 for further details.
Notice 2017-12 explains that the IRS can issue an account transcript in lieu of an estate tax closing letter. These transcripts can be accessed online through the Transcript Delivery Service or can be requested by mail or facsimile using Form 4506-T, Request for Transcript of Tax Return.
This information is general in nature and should not be relied upon. If you have specific questions, please contact your Henry+Horne advisor.
Haley M. Braun, CPA