Estate Tax Closing Letter User Fee Update

What it does

• •Increases the user fee for requesting an IRS estate tax closing letter (Letter 627) from $56 to $76 per request.
• •Establishes the new fee based on a biennial cost review conducted by the IRS using fiscal years 2023-2024 data to calculate full costs of administering the program.
• •Makes the regulations effective October 26, 2026, in compliance with the Independent Offices Appropriations Act of 1952 and OMB Circular A-25.

Why it matters

• •The fee increase reflects changes in IRS operational costs for administering the estate tax closing letter program, ensuring the user fee recovers the full cost of the service as required by federal law.
• •The regulation represents a biennial review mandated by the Independent Offices Appropriations Act and OMB policy to keep user fees aligned with actual government service costs.

Who is affected

• •Authorized persons and decedents' estates that request an IRS estate tax closing letter.
• •The IRS Small Business/Self-Employed (Examination) unit responsible for issuing the closing letters.

What happens next

These final regulations become effective on October 26, 2026, with applicability provisions detailed in section 300.12(d).