Rule2025-21649
Estate Tax Closing Letter User Fee Update
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 1, 2025
Effective
December 31, 2025
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
This document contains final regulations relating to the imposition of a user fee on authorized persons requesting the issuance of IRS Letter 627, also referred to as an estate tax closing letter. The final regulations adopt without change the text of the interim final rule and proposed regulations that reduced the amount of the user fee imposed on a request for the issuance of an estate tax closing letter from $67 to $56. The Independent Offices Appropriations Act of 1952 authorizes the charging of user fees. The final regulations affect persons who request an estate tax closing letter.
Full Text
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<title>Federal Register, Volume 90 Issue 228 (Monday, December 1, 2025)</title>
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[Federal Register Volume 90, Number 228 (Monday, December 1, 2025)]
[Rules and Regulations]
[Pages 55041-55042]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-21649]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 90, No. 228 / Monday, December 1, 2025 /
Rules and Regulations
[[Page 55041]]
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 300
[TD 10038]
RIN 1545-BR22, 1545-BR28
Estate Tax Closing Letter User Fee Update
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final rule.
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SUMMARY: This document contains final regulations relating to the
imposition of a user fee on authorized persons requesting the issuance
of IRS Letter 627, also referred to as an estate tax closing letter.
The final regulations adopt without change the text of the interim
final rule and proposed regulations that reduced the amount of the user
fee imposed on a request for the issuance of an estate tax closing
letter from $67 to $56. The Independent Offices Appropriations Act of
1952 authorizes the charging of user fees. The final regulations affect
persons who request an estate tax closing letter.
DATES:
Effective date: These regulations are effective on December 31,
2025.
Applicability date: For date of applicability, see Sec. 300.12(d).
FOR FURTHER INFORMATION CONTACT: Concerning the final regulations, Juli
Ro Kim at (202) 317-6859; concerning cost methodology, CFO Cost and
User Fees at (202) 317-6400 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Authority
This document contains amendments to 26 CFR part 300 regarding user
fees for authorized persons who request the issuance of an estate tax
closing letter (IRS Letter 627).
The Independent Offices Appropriations Act of 1952 (IOAA) (31
U.S.C. 9701) authorizes each agency to prescribe regulations that
establish user fees for services provided by the agency. The IOAA
provides that regulations implementing user fees are subject to
policies prescribed by the President; these policies are set forth in
the Office of Management and Budget Circular A-25, 58 FR 38142 (July
15, 1993) (OMB Circular A-25).
The IOAA states that the services provided by an agency should be
self-sustaining to the extent possible. Under OMB Circular A-25,
agencies that provide services that confer special benefits on
identifiable recipients beyond those accruing to the general public
must identify those services, determine whether user fees should be
assessed for those services, and, if so, establish user fees that
recover the full cost of providing those services, unless an exception
to the full cost requirement is granted. As required by the IOAA and
OMB Circular A-25, agencies are to review user fees biennially and
update them as necessary to reflect changes in the cost of providing
the underlying services.
Background
On May 20, 2025, the Department of the Treasury (Treasury
Department) and the IRS published in the Federal Register (90 FR 21439)
a notice of proposed rulemaking (proposed regulations) (REG-107459-24)
proposing amendments to regulations under 26 CFR part 300. On the same
date, the Treasury Department and the IRS published in the Federal
Register (90 FR 21410) an interim final rule (TD 10031) that reduced
the amount of the user fee imposed on a request for the issuance of an
estate tax closing letter from $67 to $56, applicable to requests
received by the IRS after May 20, 2025. The text of the interim final
rule also served as the text of the proposed regulations.
The preamble to the interim final rule contains a detailed
explanation of the legal background and user fee calculations
supporting the amendment to these regulations. The IRS received five
written public comments in response to the interim final rule and
proposed regulations. These comments are available at <a href="https://www.regulations.gov">https://www.regulations.gov</a> or upon request. No public hearing on the proposed
regulations was requested and accordingly no public hearing was held.
After careful consideration of the comments received, the Treasury
Department and the IRS adopt the text of the interim final rule and
proposed regulations without change.
Summary of Comments
One comment requested more transparency regarding how the fee is
calculated and the specific administrative costs covered in determining
the fee. The IRS followed the OMB Circular A-25 guidance to compute the
full cost of issuing estate tax closing letters to authorized persons.
The preamble to the interim final rule provides a detailed explanation
of how the user fee was calculated and shows that computation. The IRS
determined the total processing labor and benefits cost and quality
assurance labor and benefits cost. The IRS then applied the overhead
rate to the total labor and benefits cost to calculate the full cost of
the estate tax closing letter program. Finally, the IRS divided that
full cost by the average annual volume of requests.
Comments recommended a further reduction of the user fee for small
estates or low-income families. Alternatively, comments suggested
eliminating the fee in all cases and encouraged the IRS to
automatically issue, without charge, an estate tax closing letter for
every estate tax return filed. The elimination of the user fee would
require the Federal government to bear the full cost of the additional
service of issuing an estate tax closing letter. OMB Circular A-25
states that when a service offered by an agency confers special
benefits to identifiable recipients beyond those accruing to the
general public, the agency is to charge a user fee to recover the full
cost of providing the service. The issuance of the estate tax closing
letter constitutes the provision of a service that confers special
benefits to persons requesting such letters beyond those accruing to
the general public. In accordance with OMB Circular A-25, the IRS
conducted a biennial review of the estate tax closing letter user fee
and determined that the full cost of issuing estate tax closing letters
to authorized persons is $56.
Finally, one comment recommended changes to the marginal tax
brackets for estates at specified amounts. Marginal
[[Page 55042]]
tax brackets are beyond the scope of this rulemaking.
After consideration of the comments, these final regulations
therefore adopt the text of the interim final rule and proposed
regulations without change.
Special Analyses
I. Regulatory Planning and Review
These final regulations are not subject to review under section
6(b) of Executive Order 12866 pursuant to the Memorandum of Agreement
(July 4, 2025) between the Treasury Department and OMB regarding review
of tax regulations.
II. Regulatory Flexibility Act
Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it
is hereby certified that these final regulations will not have a
significant economic impact on a substantial number of small entities.
These regulations, which reduce the amount of a fee to obtain a
particular service, affect decedents' estates, which generally are not
small entities as defined under 5 U.S.C. 601(6). Thus, these
regulations have no economic impact on small entities. In addition, the
final regulations will establish a $56 fee, which is a reduction from
the previously established fee and is not substantial enough to have a
significant economic impact on any entities that could be affected by
establishing such a fee. Accordingly, the Secretary certifies that the
rule will not have a significant economic impact on a substantial
number of small entities.
III. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates Reform Act of 1995 requires
that agencies assess anticipated costs and benefits and take certain
other actions before issuing a final rule that includes any Federal
mandate that may result in expenditures in any one year by a State,
local, or Tribal government, in the aggregate, or by the private
sector, of $100 million in 1995 dollars, updated annually for
inflation. These final regulations do not include any Federal mandate
that may result in expenditures by State, local, or Tribal governments,
or by the private sector in excess of that threshold.
IV. Executive Order 13132: Federalism
Executive Order 13132 (Federalism) prohibits an agency from
publishing any rule that has federalism implications if the rule either
imposes substantial, direct compliance costs on State and local
governments, and is not required by statute, or preempts State law,
unless the agency meets the consultation and funding requirements of
section 6 of the Executive order. These final regulations do not have
federalism implications and do not impose substantial direct compliance
costs on State and local governments or preempt State law within the
meaning of the Executive order.
V. Submission to Small Business Administration
Pursuant to section 7805(f) of the Internal Revenue Code, the
notice of proposed rulemaking and the interim final rule that preceded
these final regulations were submitted to the Chief Counsel for the
Office of Advocacy of the Small Business Administration for comment on
their impact on small business. No comments were received on the
proposed regulations or the interim final rule.
VI. Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a major rule, as defined by 5 U.S.C. 804(2).
Drafting Information
The principal author of these regulations is the Office of the
Associate Chief Counsel (Passthroughs, Trusts, and Estates). Other
personnel from the Treasury Department and the IRS participated in the
development of the regulations.
List of Subjects in 26 CFR Part 300
Estate taxes, Reporting and recordkeeping requirements.
PART 300--USER FEES
0
Accordingly, the interim rule amending 26 CFR part 300, which was
published at 90 FR 21410 on May 20, 2025, is adopted as final without
change.
Frank J. Bisignano,
Chief Executive Officer.
Approved: November 4, 2025.
Kenneth J. Kies,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2025-21649 Filed 11-28-25; 8:45 am]
BILLING CODE 4831-GV-P
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</html>Indexed from Federal Register on December 1, 2025.
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