Instructions For Form 5227 printable pdf download

2006

Department of the Treasury

Internal Revenue Service

Instructions for Form 5227

Split-Interest Trust Information Return

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Section references are to the Internal Revenue Code unless

Has some unexpired interests that are devoted to

otherwise noted.

purposes other than religious, charitable, or similar

purposes described in section 170(c)(2)(B); and

Photographs of Missing Children

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Has amounts transferred in trust after May 26, 1969,

The Internal Revenue Service is a proud partner with the

for which a deduction was allowed under one of the

National Center for Missing and Exploited Children.

sections listed in section 4947(a)(2).

Photographs of missing children selected by the Center

A split-interest trust is subject to many of the same

may appear in instructions on pages that would otherwise

requirements and restrictions that are imposed on private

be blank. You can help bring these children home by

foundations.

looking at the photographs and calling 1-800-THE-LOST

Recipient. A recipient is a beneficiary who receives the

(1-800-843-5678) if you recognize a child.

possession or beneficial enjoyment of the unitrust or

annuity amount.

General Instructions

Foundation manager. A foundation manager is an

officer, director, or trustee (or an individual who has

powers or responsibilities similar to those of officers,

Purpose of Form

directors, or trustees). In the case of any act or failure to

Use Form 5227 to report the financial activities of a

act, the term foundation manager may also include an

split-interest trust described in section 4947(a)(2); and to

employee of the trust who has the authority to act.

determine whether the trust is treated as a private

Disqualified person. A disqualified person is:

foundation and is subject to certain excise taxes under

1. A substantial contributor;

Chapter 42.

2. A foundation manager;

A charitable remainder annuity trust or unitrust is

3. A person who owns more than 20% of a

exempt from federal income tax for any tax year if it:

corporation, partnership, trust, or unincorporated

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Was created after July 31, 1969, and

enterprise, which is itself a substantial contributor;

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Has no unrelated business taxable income for the tax

4. A member of the family of an individual in the first

year.

three categories; or

5. A corporation, partnership, trust, or estate in which

Even though the trust is exempt from federal income

persons described in 1, 2, 3, or 4 above own a total

tax, it must file Form 5227 each year.

beneficial interest of more than 35%.

6. For purposes of section 4943 (excess business

Who Must File

holdings), a disqualified person also includes:

All charitable remainder trusts described in section 664,

a. A private foundation which is effectively controlled

pooled income funds described in section 642(c)(5), and

(directly or indirectly) by the same persons who control

charitable lead trusts (see Exception below) must file

the trust in question, or

Form 5227.

b. A private foundation substantially all of the

contributions to which were made (directly or indirectly)

Exception. Generally, a split-interest trust created

by the same person or persons described in 1, 2, or 3

before May 27, 1969, is not required to file Form 5227.

above, or members of their families, within the meaning

However, if any amounts were transferred to the trust

of section 4946(d), who made (directly or indirectly)

after May 26, 1969, for which a deduction was allowed

substantially all of the contributions to the trust in

under any of the sections listed under section 4947(a)(2),

question.

Form 5227 must be filed for the year of the transfer and

7. For purposes of section 4941 (self-dealing), a

all subsequent years regardless of whether additional

disqualified person also includes certain government

transfers are made in subsequent years.

officials. (See section 4946(c) and the related

Charitable lead trusts and charitable remainder trusts

regulations.)

whose charitable interests involve only war veterans’

posts or cemeteries described in sections 170(c)(3) and

Phone Help

170(c)(5), respectively, are not required to complete

Parts VI and VII of Form 5227.

If you have questions and/or need help completing this

form, please call 1-877-829-5500. This toll-free telephone

Note. Regulations section 1.6012-3(a)(6) references

service is available Monday through Friday.

Form 1041-B. Form 5227 replaces Form 1041-B.

Additional Information

Definitions

For additional information on private foundations and

Split-interest trust. A split-interest trust is a trust that:

foundation managers, visit

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Is not exempt from tax under section 501(a);

Cat. No. 13228E

Instructions For Form 5227

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