MN Probate Law | IRS Transcripts in Lieu of Estate Tax Closing Letters

MN probate estate tax returnThe Internal Revenue Service (IRS) has issued an opinion that transcripts may be used by personal representatives instead of waiting for the traditional tax closing letter.

MN Probate Estate Tax Return

Traditionally, in a taxable estate, the personal representative and, vicariously, the attorney for the estate would be responsible for waiting to close out the estate until the final estate tax closing letter was received.  This often took a long time.

In essence, after the personal representative petitions and is appointed by the proper county court, and issued letters, testamentary, that person would then gather assets, pay debts, and administer the estate.  One of the implications of administering the estate are paying all necessary estate taxes.

Transcripts in Lieu of the Closing Letters

As reported by the IRS, account transcripts, “which reflect transactions including the acceptance of Form 706 and the completion of an examination” may now be used as an “acceptable substitute” for the traditional closing letter.

Typically, the probate estate tax return will be prepared by a qualified tax professional.  If you are not sure what this means: contact a qualified tax professional.

For all estate tax returns filed on or after June 1, 2015, the estate closing letters will be issued only upon request. Instead, the account transcripts can be used.  The transcripts are available online to all tax professionals. Remember what I recommended about contacting a qualified tax professional?

According to the IRS:  “the account transcript from the Transcript Delivery System (TDS) reflects transactions including the acceptance of Form 706 and/or the completion of an examination.”

How does this effect a Minnesota Probate?

It is my hope as a practicing MN probate lawyer, that this change will mean quicker processing of estate tax returns and, more importantly quicker estate administrations.  I have personally waited for a closing letter for nearly five months.  Being able to move forward on a transcript basis should be helpful.  I am somewhat leery of the implications of “faulty” transcripts and the lack of an “official” opinion.

MN Probate Estate Tax Return Lawyers

Contact the Flanders Law Firm today.  The firm offers consultations to all potential clients. Call (612) 424-0398.

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