90 FR 96 pgs. 21439-21441 - Estate Tax Closing Letter User Fee Update
Type: PRORULEVolume: 90Number: 96Pages: 21439 - 21441
Pages: 21439, 21440, 21441Docket number: [REG-107459-24]
FR document: [FR Doc. 2025-08929 Filed 5-16-25; 8:45 am]
Agency: Treasury Department
Sub Agency: Internal Revenue Service
Official PDF Version: PDF Version
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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.
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:
[top] Commenters are strongly encouraged to submit public comments
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
Paragraph 1. The authority citation for part 300 continues to read, in part, as follows:
Authority:
31 U.S.C. 9701.
Par. 2. Section 300.12 is amended by revising paragraph (b) and (d) to read as follows:
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(b) [The text of proposed §?300.12(b) is the same as the text of §?300.12(b) in the interim final rule published elsewhere in this issue of the Federal Register ].
(d) [The text of proposed §?300.12(d) is the same as the text of §?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]
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