Estate Tax Closing Letter User Fee Update, 21439-21441 [2025-08929]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 90, Number 96 (Tuesday, May 20, 2025)]
[Proposed Rules]
[Pages 21439-21441]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-08929]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 300

[REG-107459-24]
RIN 1545-BR22


Estate Tax Closing Letter User Fee Update

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the Department of the Treasury (Treasury Department) 
and the IRS are issuing interim final regulations that amend the 
current regulations to reduce the amount of the user fee imposed on 
authorized persons requesting the issuance of IRS Letter 627, also 
referred to as an estate tax closing letter. The text of the interim 
final regulations also serves as the text of these proposed 
regulations.

DATES: Electronic or written comments must be received by July 21, 
2025.

ADDRESSES: Commenters are strongly encouraged to submit public comments

[[Page 21440]]

electronically. Submit electronic submissions via the Federal 
eRulemaking Portal at https://www.regulations.gov (indicate IRS and 
REG-107459-24) by following the online instructions for submitting 
comments. Once submitted to the Federal eRulemaking Portal, comments 
cannot be edited or withdrawn. The Treasury Department and the IRS will 
publish for public availability any comments submitted to the IRS's 
public docket. Send paper submissions to: CC:PA:01:PR (REG-107459-24), 
Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin 
Station, Washington, DC 20044.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Juli Ro Kim at (202) 317-6859; concerning cost methodology, Michael A. 
Weber at (202) 317-6090; concerning submissions of comments, 
Publications and Regulations Branch at (202) 317-6901 (not toll-free 
numbers).

SUPPLEMENTARY INFORMATION:

Authority

    This notice of proposed rulemaking proposes 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) by cross-
reference to interim final regulations in the Rules and Regulations 
section of this issue of the Federal Register regarding this topic.
    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 and Explanation of Provisions

    Interim final regulations in the Rules and Regulations section of 
this issue of the Federal Register amend regulations under 26 CFR part 
300 setting a user fee for authorized persons who request the issuance 
of an estate tax closing letter. The text of the interim final 
regulations also serves as the text of these proposed regulations. The 
preamble to the interim final regulations explains the interim final 
regulations and these proposed regulations.

Special Analyses

I. Regulatory Planning and Review

    The OMB's Office of Information and Regulatory Analysis has 
determined that this regulation is not significant and is not subject 
to review under section 6(b) of Executive Order 12866.

II. Regulatory Flexibility Act

    Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it 
is hereby certified that these proposed regulations will not have a 
significant economic impact on a substantial number of small entities. 
The proposed 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 
proposed regulations have no economic impact on small entities. In 
addition, the interim 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. This rule does 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 proposed 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, this 
notice of proposed rulemaking has been submitted to the Chief Counsel 
of the Office of Advocacy of the Small Business Administration for 
comment on its impact on small business.

Comments

    Consideration will be given to comments that are submitted timely 
to the IRS as prescribed in this preamble under the ADDRESSES heading 
of this preamble. The Treasury Department and IRS request comments on 
all aspects of the proposed regulations. Any comments submitted will be 
made available at https://www.regulations.gov or upon request.

Drafting Information

    The principal author of these regulations is Juli Ro Kim of 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.

Proposed Amendments to the Regulations

    Accordingly, the Treasury Department and the IRS propose to amend 
26 CFR part 300 as follows:

PART 300--USER FEES

0
Paragraph 1. The authority citation for part 300 continues to read, in 
part, as follows:

    Authority: 31 U.S.C. 9701.

0
Par. 2. Section 300.12 is amended by revising paragraph (b) and (d) to 
read as follows:

[[Page 21441]]

Sec.  300.12  Fee for estate tax closing letter.

* * * * *
    (b) [The text of proposed Sec.  300.12(b) is the same as the text 
of Sec.  300.12(b) in the interim final rule published elsewhere in 
this issue of the Federal Register].
* * * * *
    (d) [The text of proposed Sec.  300.12(d) is the same as the text 
of Sec.  300.12(d) in the interim final rule published elsewhere in 
this issue of the Federal Register].

Edward Killen,
Acting Chief Tax Compliance Officer.
[FR Doc. 2025-08929 Filed 5-16-25; 8:45 am]
BILLING CODE 4830-01-P