Instructions For Form 5227 (Page 8 of 8) in pdf

section 4945 regulations for more

trustee is required to sever from the fund

Paid Preparer’s space should remain

information.

an amount equal to the value of the

blank. If someone prepares this return

remainder interest in the property upon

without charge, that person should not

Line 5b

which the income interest is based. The

sign the return.

If you answered “Yes” to any of the

amount severed from the fund must either

Generally, anyone who is paid to

questions in 5a, you should answer “Yes”

be paid to, or retained for the use of, the

prepare a tax return must sign the return

to 5b unless all of the transactions

designated public charity, as provided in

and fill in the other blanks in the Paid

engaged in were “excepted” transactions.

the governing instrument. See

Preparer’s Use Only area of the return.

Excepted transactions are described in

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

If you have questions about whether a

Regulations section 53.4945 or appear in

valuation procedures.

preparer is required to sign the return,

Notices published in the Internal Revenue

Section C—Charitable

please contact an IRS office.

Bulletin, relating to disaster assistance. At

Remainder Trusts and Other

The person required to sign the return

the time this form went to print, there

Information

as the preparer must complete the

were no notices currently in effect relating

required preparer information and:

to disaster assistance for “excepted”

•

Sign it, by hand, in the space provided

transactions to taxable expenditures.

Line 2

for the preparer’s signature. (Signature

If a charitable remainder annuity trust or

Line 6a

stamps and labels are not acceptable.)

certain charitable remainder unitrusts pay

•

A “personal benefit contract” is, in

Give the trustee a copy of the return in

the annuity or unitrust amount after the

general, any life insurance, annuity, or

addition to the copy to be filed with the

close of the tax year, and:

endowment contract that benefits, directly

IRS.

1. The payment is made within a

or indirectly, a transferor, a transferor’s

reasonable time after the close of the tax

family member, or a transferor designee

Paperwork Reduction Act Notice. We

year, and

that is not an organization described in

ask for the information on this form to

2. To the extent the payment is

section 170(c).

carry out the Internal Revenue laws of the

characterized as corpus from a property

Line 6b

United States. You are required to give us

distribution (other than cash), the trustee

the information. We need it to ensure that

treats any income generated by the

Enter the total of all premiums paid by the

you are complying with these laws and to

distribution as occurring on the last day of

split-interest trust on any personal benefit

allow us to figure and collect the right

the tax year for which the annuity or

contract if the payment of premiums is in

amount of tax.

connection with a transfer for which a

unitrust amount is due, then, the annuity

trust or certain unitrusts will not be

deduction is not allowed under section

You are not required to provide the

deemed to have:

170(f)(10)(A). Also, if there is an

information requested on a form that is

understanding or expectation that any

•

subject to the Paperwork Reduction Act

Engaged in self-dealing (section 4941),

•

person will directly or indirectly pay any

unless the form displays a valid OMB

Unrelated debt-financed income

premium on a personal benefit contract

control number. Books or records relating

(section 514),

•

for the transferor, include those premium

to a form or its instructions must be

Received an additional contribution

payments in the amount entered on this

retained as long as their contents may

(Regulations section 1.664-2(b) and

line. See also Notice 2000-24, 2000-17

become material in the administration of

1.664-3(b)), or

I.R.B. 952.

•

any Internal Revenue law. Generally, tax

Failed to function exclusively as a

returns and return information are

charitable remainder trust (Regulations

Part VII—Questionnaire

confidential, as required by Code section

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

6103.

for Charitable Lead Trusts,

See Regulations sections

The time needed to complete and file

1.664-2(a)(1) and 1.664-3(a)(1) for more

Pooled Income Funds, and

this form will vary depending on individual

information.

circumstances. The estimated average

Charitable Remainder

Under Regulations section

time is:

1.664-1(d)(5), a distribution of property

Trusts

(other than cash) is treated as a sale by

Recordkeeping . .

62 hr., 10 min.

the trust.

Section A—Charitable Lead

Learning about the

Note: You must report the income (gain)

law or the form . . .

11 hr., 19 min.

Trusts

generated by the property distribution

Preparing the form

19 hr., 20 min.

(discussed above) on Part I of Form 5227

Line 1

for the current tax year.

Copying,

The information on this line is used to

assembling, and

Trusts created before December 10,

determine whether sections 4943 and

sending the form to

1998. The election in Regulations

4944 apply for 2002.

IRS . . . . . . . . . . .

1 hr., 52 min.

sections 1.664-2(a)(1)(i)(a)(2) and

Line 3

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

If you have comments concerning the

charitable remainder annuity trusts and

Enter the amount for payments described

accuracy of these time estimates or

certain charitable remainder unitrusts

in sections 170(f)(2)(B), 2055(e)(2)(B),

suggestions for making this form simpler,

whose annuity or unitrust amount is 15%

and 2522(c)(2)(B).

we would be happy to hear from you. You

or less.

can write to the Tax Forms Committee,

Line 4

Western Area Distribution Center,

Signature

Enter the amount for payments permitted

Rancho Cordova, CA 95743-0001. Do

by Regulations sections 1.170A-6,

Form 5227 must be signed by the trustee

not send the tax form to this address.

20.2055-2, and 25.2522(c)-3.

or by an authorized representative.

Instead, see Where To File on page 2.

Section B—Pooled Income

If you, as trustee (or an employee or

Funds

officer of the trust), fill in Form 5227, the

Line 2

Upon termination of the income interest

retained or created by a donor, the

-8-

Instructions For Form 5227 Page 8

Related Articles

Related forms

Related Categories