Instructions For Form 5227 (Page 3 of 12) in pdf

specified number of years (not to exceed 20). Upon

Attachments

termination of the payments, the remainder interest

If you need more space, attach separate sheets showing

(valued at 10% or more) is transferred to a charitable

the same information in the same order as on the printed

organization described in section 170(c), or qualified

form. Show the totals on the printed form.

employer securities are transferred to an employee stock

ownership plan.

Enter the trust’s name and employer identification

number on each sheet. Also, use sheets that are the

Charitable remainder unitrust. This is a trust under

same size as the forms and indicate clearly the line of the

section 664(d)(2) similar to a charitable remainder

printed form to which the information relates.

annuity trust, except that it pays, at least annually, a fixed

percentage (not less than 5% but not more than 50%) of

the net fair market value of the trust’s assets.

Specific Instructions

Pooled income fund. This is a trust under section

642(c)(5) created and maintained by a charitable

organization described in section 170(b)(1)(A)(i)-(vi).

Identification Area

Donors to the fund receive a lifetime income interest and

If you received a Form 5227 from the IRS with a peel-off

the charitable organization receives the remainder

label, attach the label to the name and address area of

interest.

the return. If the name or address on the label is wrong,

E. Initial Return, Final Return, Amended

draw a line through the incorrect portion and enter the

Return; or Change of Name or Address

correct information.

If you did not receive a peel-off label, complete the

Initial return. Check this box if this is the initial return for

information called for at the top of the form as it appears

the split-interest trust and enter the date that the entity

on Form SS-4, Application for Employer Identification

was created.

Number.

Final return. Check this box if this is a final return

Address

because the trust has terminated. Also, check the “Final

K-1” box at the top of the Schedule K-1 (Form 1041).

Include the suite, room, or other unit number after the

Amended return. If you are filing an amended 2004

street address. If the Post Office does not deliver mail to

Form 5227, check the “Amended return” box. Complete

the street address and the trustee has a P.O. box, show

the entire return and correct the appropriate lines with the

the box number instead.

new information. On an attachment, explain the reason

If you receive mail for the trust in care of a third party

for the changes and identify the lines and amounts being

(such as an accountant or an attorney), enter on the

changed.

street address line “C/O” followed by the third party’s

If the amended return results in a change to income,

name and street address or P.O. box.

or a change in distribution of any income or other

A. Employer Identification Number (EIN)

information provided to a recipient, an amended

Schedule K-1 (Form 1041) must be filed with the

Every trust must have an employer identification number

amended Form 5227 and a copy given to each recipient.

(EIN). You can use one of the following methods to apply

Check the “Amended K-1” box at the top of the Schedule

for an EIN.

•

K-1 (Form 1041).

Online - Click on the EIN link at

businesses/small. The EIN is issued immediately once

Change of name or address. If there has been a

the application information is validated.

change in the trustee’s name or address from the one

•

By telephone at 1-800-829-4933 from 7:00 a.m. to

used on the prior year’s return (including a change to an

10:00 p.m. in the trust’s local time zone.

“in care of” name and address), check the appropriate

•

By mailing or faxing Form SS-4, Application for

box.

Employer Identification Number. You may get this form

If the address shown on Form 5227 changes after you

from the IRS or the Social Security Administration. If you

file the form (including a change to an “in care of” name

are going to apply by mail, send in the Form SS-4 at least

and address) file Form 8822, Change of Address, to

4 to 5 weeks before you need the number.

notify the IRS of the change.

If the trust has not received its EIN by the time the return

F. Unrelated Business Taxable Income

is due, write “Applied for” in the space for the EIN. For

more details, see Pub. 583.

(section 664 trusts only)

Note: The online application process is not yet available

If the charitable remainder trust has any unrelated

for trusts with addresses in foreign countries or Puerto

business taxable income (within the meaning of section

Rico

512 and related regulations) for 2004, all of the trust’s

income is subject to the same taxes (including estimated

B. Type of Entity

tax payments) that are imposed on complex trusts under

Subchapter J of the Internal Revenue Code. The trust

Charitable lead trust. This is a trust that pays a fixed

annuity or unitrust amount to a charitable organization for

cannot be taxed as a grantor trust.

a fixed number of years. Upon termination of the

If you answer “Yes,” in addition to Form 5227, file

payments, the remainder interest is transferred to a

Form 1041 (if a domestic trust). Use Form 1041 to report

noncharitable beneficiary.

all the trust’s income (not just the unrelated business

Charitable remainder annuity trust. This is a trust

income) and its deductions (including the deduction for

under section 664(d)(1) that pays a fixed dollar amount

distributions to beneficiaries) and to compute any tax

(not less than 5% but not more than 50% of the initial net

due. Use the regular trust rules contained in the

fair market value of all property placed in trust), at least

Instructions for Form 1041. You must also complete

annually, to one or more beneficiaries, at least one of

Schedule I of Form 1041 to determine whether the trust

which is not a charitable organization, for life, or for a

is subject to any alternative minimum tax.

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Instructions For Form 5227 Page 3

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