Tips From the Pros: Is a Closing Letter Worth $67?Tips From the Pros: Is a Closing Letter Worth $67?

Before June 1, 2015, the Internal Revenue Service generally issued an estate tax closing letter (Letter 627) for every estate tax return filed.¹ The IRS generated a closing letter automatically, without the executor’s having to request it and without charge, to indicate acceptance of the estate tax return and to convey certain other information. Consistent with Revenue Procedure 2005-32, a closing letter explains that the IRS won’t reopen or examine the estate tax return to determine estate tax liability unless the estate notifies the IRS of changes to the return or there’s: (1) evidence of fraud, malfeasance, collusion, concealment or misrepresentation of a material fact; (2) a clearly defined substantial error based on an established I...