Instructions For Form 5227 (Page 10 of 12) in pdf

1.664-3(a)(1)(i)(g)(2) does not apply to charitable

Part VII—Questionnaire for Charitable

remainder annuity trusts and certain charitable remainder

Lead Trusts, Pooled Income Funds,

unitrusts whose annuity or unitrust amount is 15% or

less.

and Charitable Remainder Trusts

Signature

Section A—Charitable Lead Trusts

Form 5227 must be signed by the trustee or by an

authorized representative.

Line 1

The information on this line is used to determine whether

If you, as trustee (or an employee or officer of the

sections 4943 and 4944 apply for 2004.

trust), fill in Form 5227, the Paid Preparer’s space should

remain blank. If someone prepares this return without

Line 3

charge, that person should not sign the return.

Enter the amount for payments described in sections

Generally, anyone who is paid to prepare a tax return

170(f)(2)(B), 2055(e)(2)(B), and 2522(c)(2)(B).

must sign the return and fill in the other blanks in the Paid

Preparer’s Use Only area of the return.

Line 4

Enter the amount for payments permitted by Regulations

If you have questions about whether a preparer is

sections 1.170A-6, 20.2055-2, and 25.2522(c)-3.

required to sign the return, please contact an IRS office.

The person required to sign the return as the preparer

Section B—Pooled Income Funds

must:

•

Complete the required preparer information,

Line 2

•

Sign it in the space provided for the preparer’s

Upon termination of the income interest retained or

signature (a facsimile signature is acceptable), and

created by a donor, the trustee is required to sever from

•

Give the trustee a copy of the return in addition to the

the fund an amount equal to the value of the remainder

copy to be filed with the IRS.

interest in the property upon which the income interest is

based. The amount severed from the fund must either be

paid to, or retained for the use of, the designated public

Privacy Act and Paperwork Reduction Act Notice.

charity, as provided in the governing instrument. See

We ask for the information on this form to carry out the

Regulations section 1.642(c)-5(b)(8) for valuation

Internal Revenue laws of the United States. You are

procedures.

required to give us the information. We need it to ensure

that you are complying with these laws and to allow us to

Section C—Charitable Remainder Trusts

figure and collect the right amount of tax. Section 6109

and Other Information

requires return preparers to provide their identifying

numbers on the return.

Line 2

You are not required to provide the information

If a charitable remainder annuity trust or certain

requested on a form that is subject to the Paperwork

charitable remainder unitrusts pay the annuity or unitrust

Reduction Act unless the form displays a valid OMB

amount after the close of the tax year, and:

control number. Books or records relating to a form or its

1. The payment is made within a reasonable time

instructions must be retained as long as their contents

after the close of the tax year, and

may become material in the administration of any Internal

2. To the extent the payment is characterized as

Revenue law. Generally, tax returns and return

corpus from a property distribution (other than cash), the

information are confidential, as required by Code section

trustee treats any income generated by the distribution as

6103.

occurring on the last day of the tax year for which the

The time needed to complete and file this form will

annuity or unitrust amount is due, then, the annuity trust

vary depending on individual circumstances. The

or certain unitrusts will not be deemed to have:

estimated average time is:

•

Engaged in self-dealing (section 4941),

•

Recordkeeping . . . . . . . . .

65 hr., 17 min.

Unrelated debt-financed income (section 514),

•

Learning about the law or

Received an additional contribution (Regulations

the form . . . . . . . . . . . . . .

11 hr., 24 min.

section 1.664-2(b) and 1.664-3(b)), or

•

Failed to function exclusively as a charitable remainder

Preparing the form . . . . . .

19 hr., 24 min.

trust (Regulations section 1.664-1(a)(4)).

Copying, assembling, and

sending the form to IRS . .

1 hr., 52 min.

See Regulations sections 1.664-2(a)(1) and

1.664-3(a)(1) for more information.

If you have comments concerning the accuracy of

Under Regulations section 1.664-1(d)(5), a distribution

these time estimates or suggestions for making this form

of property (other than cash) is treated as a sale by the

simpler, we would be happy to hear from you. You can

trust.

write to the Internal Revenue Service, Tax Products

Coordinating Committee, SE:W:CAR:MP:T:T:SP, Room

Note: You must report the income (gain) generated by

6406, 1111 Constitution Ave. NW, Washington, DC

the property distribution (discussed above) on Part I of

20224. Do not send the tax form to this address. Instead,

Form 5227 for the current tax year.

see Where To File on page 2.

Trusts created before December 10, 1998. The

election in Regulations sections 1.664-2(a)(1)(i)(a)(2) and

-10-

Instructions For Form 5227 Page 10

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