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.
Note: Regulations section 1.6012-3(a)(6)
substantially all of the contributions to the
Photographs of Missing
references Form 1041-B. Form 5227
trust in question.
Children
replaces Form 1041-B.
7. For purposes of section 4941
(self-dealing), a disqualified person also
The Internal Revenue Service is a proud
includes certain government officials.
Definitions
partner with the National Center for
(See section 4946(c) and the related
Missing and Exploited Children.
A split-interest trust is a trust that:
regulations.)
Photographs of missing children selected
•
Is not exempt from tax under section
by the Center may appear in instructions
501(a);
on pages that would otherwise be blank.
•
Phone Help
Has some unexpired interests that are
You can help bring these children home
devoted to purposes other than religious,
If you have questions and/or need help
by looking at the photographs and calling
charitable, or similar purposes described
completing this form, please call
1-800-THE-LOST (1-800-843-5678) if you
in section 170(c)(2)(B); and
1-877-829-5500. This toll-free telephone
recognize a child.
•
Has amounts transferred in trust after
service is available Monday through
May 26, 1969, for which a deduction was
Friday from 8:00 a.m. to 6:30 p.m.
allowed under one of the Code sections
Eastern time.
General Instructions
listed in section 4947(a)(2).
A split-interest trust is subject to many
Additional Information
of the same requirements and restrictions
Purpose of Form
For additional information on private
that are imposed on private foundations.
foundations and foundation managers,
Use Form 5227 to report the financial
see Pub. 578, Tax Information for Private
A recipient is a beneficiary who
activities of a split-interest trust described
Foundations and Foundation Managers.
receives the possession or beneficial
in section 4947(a)(2); and to determine
enjoyment of the unitrust or annuity
whether the trust is treated as a private
Other Forms You May
amount.
foundation and is subject to the excise
taxes under Chapter 42.
Have To File
A foundation manager is an officer,
director, or trustee (or an individual who
A charitable remainder annuity trust or
You may also be required to file one or
has powers or responsibilities similar to
unitrust is exempt from Federal income
more of the following forms:
•
those of officers, directors, or trustees). In
tax for any tax year if it:
Form 56, Notice Concerning Fiduciary
•
the case of any act or failure to act, the
Was created after July 31, 1969, and
Relationship.
•
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term foundation manager may also
Has no unrelated business taxable
Form 1041, U.S. Income Tax Return
include an employee of the trust who has
income for the tax year.
for Estates and Trusts.
•
the authority to act.
Even though the trust is exempt from
Form 1041-A, U.S. Information
Federal income tax, it must file Form
Return — Trust Accumulation of
A disqualified person is:
5227 each year.
Charitable Amounts.
•
1. A substantial contributor;
Form 1041-ES, Estimated Income Tax
Who Must File
2. A foundation manager;
for Estates and Trusts.
•
3. A person who owns more than 20%
Form 4720, Return of Certain Excise
All charitable remainder trusts described
of a corporation, partnership, trust, or
Taxes on Charities and Other Persons
in section 664, pooled income funds
unincorporated enterprise, which is itself
Under Chapters 41 and 42 of the Internal
described in section 642(c)(5), and
a substantial contributor;
Revenue Code.
charitable lead trusts (see Exception
•
4. A member of the family of an
Form 8275, Disclosure Statement — to
below) must file Form 5227.
individual in the first three categories; or
disclose items or positions (except those
Exception. Generally, a split-interest
5. A corporation, partnership, trust, or
contrary to a regulation — see Form
trust created before May 27, 1969, is not
estate in which persons described in 1, 2,
8275-R below) that are not otherwise
required to file Form 5227. However, if
3, or 4 above own a total beneficial
adequately disclosed on the tax return.
any amounts were transferred to the trust
interest of more than 35%.
The disclosure is made to avoid parts of
after May 26, 1969, for which a deduction
6. For purposes of section 4943
the accuracy-related penalty for disregard
was allowed under any of the sections
(excess business holdings), a disqualified
of rules or substantial understatement of
listed under section 4947(a)(2), Form
person also includes:
tax. Form 8275 is also used for
5227 must be filed for the year of the
a. A private foundation which is
disclosures relating to preparer penalties
transfer and all subsequent years
effectively controlled (directly or indirectly)
for understatements due to unrealistic
regardless of whether additional transfers
by the same persons who control the trust
positions or for willful or reckless conduct.
are made in subsequent years.
•
in question or
Form 8275-R, Regulation Disclosure
b. A private foundation substantially
Charitable lead trusts and charitable
Statement — to disclose any item on a tax
remainder trusts whose charitable
all of the contributions to which were
return for which a position has been taken
interests involve only war veterans’ posts
made (directly or indirectly) by the same
that is contrary to Treasury regulations.
•
person or persons described in 1, 2, or 3
or cemeteries described in sections
Form 8822, Change of Address.
•
above, or members of their families,
170(c)(3) and 170(c)(5), respectively, are
Form 8868, Application for Extension
within the meaning of section 4946(d),
not required to complete Parts VI and VII
of Time To File an Exempt Organization
who made (directly or indirectly)
of Form 5227.
Return.
Cat. No. 13228E
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