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Thus, the receipt of an estate tax closing letter generally indicates that, for purposes of determining the estate tax liability of the decedent's estate, the IRS examination of the estate tax return is closed.
Length of Probate Process in Maryland The administration of an estate often takes approximately one year. This includes marshaling all of the assets, valuing the assets as of the date of death and then making the distribution.
An estate tax closing letter is a form letter that the Internal Revenue Service (IRS) will send to you after your IRS Form 706 has been reviewed and accepted. Form 706 is a rather lengthy return that the executor of an estate will file after the death of an individual.
When IRS Form 706 is filed, it will take six to eight weeks for the IRS to process it. After this, it will take six to nine months for the IRS to issue a closing letter or to announce that an audit will take place.
Account transcripts, which reflect transactions including the acceptance of Form 706 and the completion of an examination, may be an acceptable substitute for the estate tax closing letter.
WASHINGTON ? The Internal Revenue Service announced today that starting Oct. 28, a new $67 user fee will apply to any estate that requests a closing letter for its federal estate tax return. The new user fee was authorized under final regulations, TD 9957PDF, available today in the Federal Register.
This is done by filing a ?Petition for Declaration of Completion of Administration? along with any supporting documentation. The court will review your petition and, if everything ticks, will issue an Order Closing Estate. With this order, you can distribute any remaining assets to the rightful heirs and beneficiaries.