Instructions For Form 5227
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Department of the Treasury
Internal Revenue Service
Instructions for Form 5227
Split-Interest Trust Information Return
Section references are to the Internal Revenue Code unless otherwise noted.
transfer and all subsequent years
by the same persons who control the trust
A Change To Note
regardless of whether additional transfers
in question or
Long-term capital gain property that
are made in subsequent years.
b. A private foundation substantially
formerly was classified as belonging to
all of the contributions to which were
Charitable lead trusts and charitable
the 20% group has been divided into
made (directly or indirectly) by the same
remainder trusts whose charitable
qualified 5-year gain and Other 20% gain.
person or persons described in 1, 2, or 3
interests involve only war veterans’ posts
See the discussions under Line 17 —
above, or members of their families,
or cemeteries described in sections
Long-Term Capital Gain or (Loss), and
within the meaning of section 4946(d),
170(c)(3) and 170(c)(5), respectively, are
Additional Rules for Capital Gains and
who made (directly or indirectly)
not required to complete Parts VI and VII
(Losses) in Part III — Current Distribution
substantially all of the contributions to the
of Form 5227.
Schedule.
trust in question.
Note: Regulations section 1.6012-3(a)(6)
7. For purposes of section 4941
Photographs of Missing
references Form 1041-B. Form 5227
(self-dealing), a disqualified person also
replaces Form 1041-B.
includes certain government officials.
Children
(See section 4946(c) and the related
Definitions
The Internal Revenue Service is a proud
regulations.)
partner with the National Center for
A split-interest trust is a trust that:
•
Missing and Exploited Children.
Is not exempt from tax under section
Photographs of missing children selected
Phone Help
501(a);
•
by the Center may appear in instructions
Has some unexpired interests that are
If you have questions and/or need help
on pages that would otherwise be blank.
devoted to purposes other than religious,
completing this form, please call
You can help bring these children home
charitable, or similar purposes described
1-877-829-5500. This toll-free telephone
by looking at the photographs and calling
in section 170(c)(2)(B); and
service is available Monday through
•
1-800-THE-LOST (1-800-843-5678) if you
Has amounts transferred in trust after
Friday from 8:00 a.m. to 9:30 p.m.
recognize a child.
May 26, 1969, for which a deduction was
Eastern time.
allowed under one of the Code sections
General Instructions
listed in section 4947(a)(2).
Additional Information
A split-interest trust is subject to many
For additional information on private
of the same requirements and restrictions
foundations and foundation managers,
that are imposed on private foundations.
Purpose of Form
see Pub. 578, Tax Information for Private
A recipient is a beneficiary who
Use Form 5227 to report the financial
Foundations and Foundation Managers.
receives the possession or beneficial
activities of a split-interest trust described
enjoyment of the unitrust or annuity
in section 4947(a)(2); and to determine
Other Forms You May
amount.
whether the trust is treated as a private
Have To File
foundation and is subject to the excise
A foundation manager is an officer,
taxes under Chapter 42.
director, or trustee (or an individual who
You may also be required to file one or
has powers or responsibilities similar to
A charitable remainder annuity trust or
more of the following forms:
those of officers, directors, or trustees). In
•
unitrust is exempt from Federal income
Form 56, Notice Concerning Fiduciary
the case of any act or failure to act, the
tax for any tax year if it:
Relationship.
•
term foundation manager may also
•
Was created after July 31, 1969, and
Form 1041, U.S. Income Tax Return
•
include an employee of the trust who has
Has no unrelated business taxable
for Estates and Trusts.
the authority to act.
•
income for the tax year.
Form 1041-A, U.S. Information
Even though the trust is exempt from
A disqualified person is:
Return — Trust Accumulation of
Federal income tax, it must file Form
1. A substantial contributor;
Charitable Amounts.
•
5227 each year.
2. A foundation manager;
Form 1041-ES, Estimated Income Tax
3. A person who owns more than 20%
for Estates and Trusts.
Who Must File
•
of a corporation, partnership, trust, or
Form 4720, Return of Certain Excise
All charitable remainder trusts described
unincorporated enterprise, which is itself
Taxes on Charities and Other Persons
in section 664, pooled income funds
a substantial contributor;
Under Chapters 41 and 42 of the Internal
described in section 642(c)(5), and
4. A member of the family of an
Revenue Code.
•
charitable lead trusts (see Exception
individual in the first three categories; or
Form 8275, Disclosure Statement — to
below) must file Form 5227.
5. A corporation, partnership, trust, or
disclose items or positions (except those
estate in which persons described in 1, 2,
contrary to a regulation — see Form
Exception. Generally, a split-interest
3, or 4 above own a total beneficial
8275-R below) that are not otherwise
trust created before May 27, 1969, is not
interest of more than 35%.
required to file Form 5227. However, if
adequately disclosed on the tax return.
6. For purposes of section 4943
any amounts were transferred to the trust
The disclosure is made to avoid parts of
(excess business holdings), a disqualified
after May 26, 1969, for which a deduction
the accuracy-related penalty for disregard
person also includes:
of rules or substantial understatement of
was allowed under any of the sections
tax. Form 8275 is also used for
listed under section 4947(a)(2), Form
a. A private foundation which is
disclosures relating to preparer penalties
5227 must be filed for the year of the
effectively controlled (directly or indirectly)
Cat. No. 13228E
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