IRS: Account transcripts can serve as estate tax closing letter

A recent IRS notice confirms that an account transcript issued by the IRS qualifies as a substitute for an estate tax closing letter, as long as the transcript includes the proper transaction code.

An estate tax closing letter indicates that the IRS has accepted an estate tax return and that the estate’s federal tax liabilities have been satisfied. Once the letter has been received, it makes it clear to the executor of the estate that it can proceed with finalizing the estate administration process.

The receipt of the closing letter is often needed to meet requirements for state law probate proceedings. It’s rare for the IRS to reopen an estate tax return after a closing letter has been issued, except in certain extreme circumstances such as fraud or a major error by the IRS.

However, the IRS stopped automatically issuing estate tax closing letters effective June 1, 2015. Since then, the taxpayer’s representative receives a closing letter only by request.

The new IRS notice (Notice 2017-12) makes clear that a taxpayer’s IRS account transcripts noting transaction code 421 can serve as a replacement for an estate tax closing letter. This code indicates that Form 706, which is used to determine the amount of the estate tax, has been accepted as filed and an examination has been concluded.

According to the IRS, account transcripts that contain transaction code 421 are functionally equivalent to an estate tax closing letter.

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He took time to discuss my case, and also took time to understand me personally. Gilbert was very clear in laying out a plan for my benefit, how the matter will proceed and finally come to a close. I was able to talk through anything I did not understand and he and his staff were very helpful keeping me updated with the progress of my case. Finally, the case came to a close as simply as possible and without surprises.

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   Jose Burga 
 
 
 
  Excellent CS
  
 
        
   Lisa Condrey 
 
 
 
  From my first contact with the office to the last letter closing out our business, Mr. Vara & his staff have been attentive, compassionate, knowledgeable, & extremely helpful. I highly recommend Mr. Vara & his office.
  
 
        
   olivia calderon 
 
 
 
  I have known him for several years and I have never hesitated to give excellent recommendations of his work to friends and acquaintances.
  
 
        
   Kay 
 
 
 
  We appreciated the professionalism and prompt attention to detail  Mr. Vara and Krystin gave us, upon our first conversation.  The integrity of this law practice, the concern shown toward the client, and the knowledge base of this practice is sterling in comparison with others in the field.  This polished and established law practice completed my Mother's estate in a seamless manner, with timely and succinct communication.  A heart-felt thank you to Mr. Vara and Krystin  for their work and a great big "shout-out" to each in appreciation of their guidance!  Respectfully submitted.  K. Woltersdorf
  
 
        
   The Muscle Factory Support Team 
 
 
 
  Mr. Gilbert Vara is an exceptional lawyer who handled my LLC and will . He was very helpful in answering all my questions. I highly recommend him to anyone looking for an attorney.
  
 
        
   jeffrey molina 
 
 
 
  Mr. Vara was recommended to myself and my mother to take care of her estate planning, last will and testament, and a family legal matter that needed some attention. Mr Vara was very kind, professional, personable and took the time to get to know us and our unusual legal situation, and our desires as to the outcome of our visit with him. His plan of action was explained to us in length, with plenty of opportunities to ask questions or just give our input about our case. Mr Vara was very pleasurable to work with and the outcome to our situation was resolved in our favor. I think the most pleasurable thing about working with Mr Vara and his staff was that we were kept informed of what was being done, what step in the process we were in. We were always kept informed of the status of our case. Thank you Mr Vara and staff for making what could have been a horrible experience fir my family a less obtrusive experience and resolving our legal issues. I would highly recommend this firm for your legal needs
  
 
        
   Rhonda Valenti 
 
 
 
  I could not be more pleased with the legal services I received from Gilbert and his staff.  From my first encounter and through the conclusion of my case with his office, Gilbert was the consummate professional, highly sensitive to a very difficult family situation, and 100% available throughout the case.  Gilbert was conscientious and thoughtful regarding costs and billing and was proactive in managing my case and minimizing fees where possible.  Gilbert's staff reflects his professionalism, experience, and outstanding performance.  Krysten was very professional, competent, and kept me informed and connected.  One of the most remarkable traits of Gilbert is his ability to bring clarity and understanding to the intricacies, complexities, and complications around guardianships.  I recommend The Law Office of Gilbert Vara, Jr. - 5 stars all day!
  
 
  
 
  
 
   Google rating score: 4.9 of 5, based on 14 reviews,showing only 4-5 star reviews

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Jose Burga

Excellent CS

Lisa Condrey

From my first contact with the office to the last letter closing out our business, Mr. Vara & his staff have been attentive, compassionate, knowledgeable, & extremely helpful. I highly recommend Mr. Vara & his office.

olivia calderon

I have known him for several years and I have never hesitated to give excellent recommendations of his work to friends and acquaintances.

Kay

We appreciated the professionalism and prompt attention to detail Mr. Vara and Krystin gave us, upon our first conversation. The integrity of this law practice, the concern shown toward the client, and the knowledge base of this practice is sterling in comparison with others in the field. This polished and established law practice completed my Mother's estate in a seamless manner, with timely and succinct communication. A heart-felt thank you to Mr. Vara and Krystin for their work and a great big "shout-out" to each in appreciation of their guidance! Respectfully submitted. K. Woltersdorf

The Muscle Factory Support Team

Mr. Gilbert Vara is an exceptional lawyer who handled my LLC and will . He was very helpful in answering all my questions. I highly recommend him to anyone looking for an attorney.

jeffrey molina

Mr. Vara was recommended to myself and my mother to take care of her estate planning, last will and testament, and a family legal matter that needed some attention. Mr Vara was very kind, professional, personable and took the time to get to know us and our unusual legal situation, and our desires as to the outcome of our visit with him. His plan of action was explained to us in length, with plenty of opportunities to ask questions or just give our input about our case. Mr Vara was very pleasurable to work with and the outcome to our situation was resolved in our favor. I think the most pleasurable thing about working with Mr Vara and his staff was that we were kept informed of what was being done, what step in the process we were in. We were always kept informed of the status of our case. Thank you Mr Vara and staff for making what could have been a horrible experience fir my family a less obtrusive experience and resolving our legal issues. I would highly recommend this firm for your legal needs

Rhonda Valenti

I could not be more pleased with the legal services I received from Gilbert and his staff. From my first encounter and through the conclusion of my case with his office, Gilbert was the consummate professional, highly sensitive to a very difficult family situation, and 100% available throughout the case. Gilbert was conscientious and thoughtful regarding costs and billing and was proactive in managing my case and minimizing fees where possible. Gilbert's staff reflects his professionalism, experience, and outstanding performance. Krysten was very professional, competent, and kept me informed and connected. One of the most remarkable traits of Gilbert is his ability to bring clarity and understanding to the intricacies, complexities, and complications around guardianships. I recommend The Law Office of Gilbert Vara, Jr. - 5 stars all day!

IRS: Account transcripts can serve as estate tax closing letter

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