Congress Blocks IRS Fee Hike: Estate Tax Closing Letter Cost Stays Put

This joint resolution is Congress stepping in to hit the brakes on a proposed fee increase by the Internal Revenue Service (IRS). Specifically, it formally disapproves of a rule the IRS submitted that would have updated (read: increased) the user fee for obtaining an Estate Tax Closing Letter. Because Congress is saying "no" to this rule via this resolution, the fee update—which the IRS had published in the Federal Register—will not take effect. Think of it as a legislative veto on a specific administrative cost.

The IRS Fee That Didn't Happen

When a person passes away, the executor or administrator of their estate often needs to file an estate tax return (Form 706). After the IRS reviews the return, they issue an Estate Tax Closing Letter, which officially confirms the final tax liability and closes the matter. It’s a necessary piece of paperwork for winding up the deceased person’s financial affairs. The IRS had proposed a new fee structure for this letter, but this resolution uses the authority granted under Chapter 8 of Title 5 of the U.S. Code—often called the Congressional Review Act—to scrap it entirely. For the executor or estate attorney who handles this paperwork, this means they avoid paying whatever new, higher fee the IRS was planning to charge.

Why This Matters for Everyday Money

While estate tax only affects a small percentage of high-net-worth individuals, the administrative costs still impact the families and professionals handling the process. This resolution is a win for anyone who would have had to pay that new fee. Imagine you’re the executor for a family member’s estate, already juggling paperwork, attorneys, and appraisals. Preventing an increase in administrative fees—even a relatively minor one—is one less expense to worry about during an already stressful time. It keeps the cost of settling an estate predictable and avoids adding a new line item to the final bill that gets passed on to the heirs.

A Check on Administrative Power

This move is a classic example of Congress exercising its oversight function. The Congressional Review Act allows the legislative branch to review and reject rules made by federal agencies like the IRS. In this case, Congress is essentially telling the IRS that while they have the authority to manage their operations, raising this specific user fee is off the table. It reinforces the idea that agencies can’t simply adjust fees or regulations without potential pushback from elected officials. The immediate impact is simple: the fee for the Estate Tax Closing Letter remains whatever it was before the IRS tried to update it.