Instructions For Form 5227 printable pdf download

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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.

•

Has amounts transferred in trust after May 26, 1969,

Photographs of Missing Children

for which a deduction was allowed under one of the Code

The Internal Revenue Service is a proud partner with the

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

National Center for Missing and Exploited Children.

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

Photographs of missing children selected by the Center

requirements and restrictions that are imposed on private

may appear in instructions on pages that would otherwise

foundations.

be blank. You can help bring these children home by

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

act, the term foundation manager may also include an

Use Form 5227 to report the financial activities of a

employee of the trust who has the authority to act.

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

determine whether the trust is treated as a private

Disqualified person. A disqualified person is:

foundation and is subject to the 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:

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corporation, partnership, trust, or unincorporated

Was created after July 31, 1969, and

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enterprise, which is itself a substantial contributor;

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

Even though the trust is exempt from federal income

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

tax, it must file Form 5227 each year.

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

beneficial interest of more than 35%.

Who Must File

6. For purposes of section 4943 (excess business

All charitable remainder trusts described in section 664,

holdings), a disqualified person also includes:

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

a. A private foundation which is effectively controlled

charitable lead trusts (see Exception below) must file

(directly or indirectly) by the same persons who control

Form 5227.

the trust in question, or

Exception. Generally, a split-interest trust created

b. A private foundation substantially all of the

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

contributions to which were made (directly or indirectly)

However, if any amounts were transferred to the trust

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

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

above, or members of their families, within the meaning

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

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

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

substantially all of the contributions to the trust in

all subsequent years regardless of whether additional

question.

transfers are made in subsequent years.

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

disqualified person also includes certain government

Charitable lead trusts and charitable remainder trusts

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

whose charitable interests involve only war veterans’

regulations.)

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

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

Parts VI and VII of Form 5227.

Phone Help

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

If you have questions and/or need help completing this

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

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

Definitions

service is available Monday through Friday.

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

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Additional Information

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

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Has some unexpired interests that are devoted to

For additional information on private foundations and

purposes other than religious, charitable, or similar

foundation managers, see Pub. 578, Tax Information for

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

Private Foundations and Foundation Managers.

Cat. No. 13228E

Instructions For Form 5227

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