The IRS will no longer confirm that an estate's tax is settled

The IRS will stop issuing "estate tax closing letters" unless specifically requested by the taxpayer. These letters confirmed that the IRS had finished reviewing an estate's tax return and that the tax liability was settled. Now, estates will only receive a closing letter if they ask for it, and only after the IRS has completed its review.

For decades, an estate's executor could expect a letter from the IRS confirming that the estate's tax obligations were complete. This letter was a clear signal that the executor could distribute assets without fear of future IRS claims. Without this automatic confirmation, executors and beneficiaries will face more uncertainty about when an estate is truly settled, potentially delaying distributions or requiring legal advice to manage the lingering risk.