IRS to Offer Alternative to Estate Tax Closing Letters

News from RWHSG

Posted by Kim Chen on September 25th, 2015

The IRS will soon provide practitioners with an alternative to receiving estate closing letters, which provide assurance that the estate tax return (Form 706 has been accepted as filed or that the required adjustments are completed. According to Catherine Hughes, a Treasury Department estate and gift tax attorney speaking before the American Bar Association Section of Taxation meeting in Chicago on 9/18/15, the IRS plans to update its Frequently Asked Questions (FAQs) on its website to inform practitioners that they can request a transcript of an estate tax return that includes a code indicating that the IRS has completed its estate tax examination. [ Editor’s Note: This is important now that the IRS has said it won’t automatically issue closing letters for estate tax returns filed on or after 6/1/15. Instead, practitioners must request a closing letter after waiting at least four months after filing the return.] When available, the updated estate tax FAQs will be posted at: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Estate-Taxes.