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

Line 1

authorized representative.

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 2006.

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

Line 3

remain blank. If someone prepares this return without

charge, that person should not sign the return.

Enter the amount for payments described in sections

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

Generally, anyone who is paid to prepare a tax return

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

Line 4

Preparer’s Use Only area of the return.

Enter the amount for payments permitted by Regulations

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

If you have questions about whether a preparer is

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

Section B. Pooled Income Funds

The person required to sign the return as the preparer

Line 2

must:

•

Upon termination of the income interest retained or

Complete the required preparer information,

•

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

Sign it in the space provided for the preparer’s

the fund an amount equal to the value of the remainder

signature (a facsimile signature is acceptable), and

•

interest in the property upon which the income interest is

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

based. The amount severed from the fund must either be

copy to be filed with the IRS.

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

charity, as provided in the governing instrument. See

Privacy Act and Paperwork Reduction Act Notice.

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

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

procedures.

Internal Revenue laws of the United States. You are

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

Section C. Charitable Remainder Trusts and

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

Other Information

figure and collect the right amount of tax. Section 6109

requires return preparers to provide their identifying

Line 2

numbers on the return.

If a charitable remainder annuity trust or certain

charitable remainder unitrusts pay the annuity or unitrust

You are not required to provide the information

amount after the close of the tax year, and:

requested on a form that is subject to the Paperwork

1. The payment is made within a reasonable time

Reduction Act unless the form displays a valid OMB

after the close of the tax year, and

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

2. To the extent the payment is characterized as

instructions must be retained as long as their contents

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

may become material in the administration of any Internal

trustee treats any income generated by the distribution as

Revenue law. Generally, tax returns and return

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

information are confidential, as required by section 6103.

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

or certain unitrusts will not be deemed to have:

The time needed to complete and file this form will

vary depending on individual circumstances. The

•

Engaged in self-dealing (section 4941),

estimated average time is:

•

Unrelated debt-financed income (section 514),

•

Recordkeeping . . . . . . . . .

65 hr., 17 min.

Received an additional contribution (Regulations

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

Learning about the law or

•

Failed to function exclusively as a charitable remainder

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

11 hr., 24 min.

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

Preparing the form . . . . . .

19 hr., 24 min.

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

Copying, assembling, and

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

sending the form to IRS . .

1 hr., 52 min.

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

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

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

the property distribution (discussed above) on Part I of

IR-6406, 1111 Constitution Ave. NW, Washington, DC

Form 5227 for the current tax year.

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

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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