Instructions For Form 5227 (Page 10 of 12) in pdf

personal benefit contract for the transferor, include those

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

premium payments in the amount entered on this line.

remainder annuity trusts and certain charitable remainder

For more information, see the instructions for Form 8870.

unitrusts whose annuity or unitrust amount is 15% or

less.

Part VII—Questionnaire for Charitable

Signature

Lead Trusts, Pooled Income Funds,

Form 5227 must be signed by the trustee or by an

and Charitable Remainder Trusts

authorized representative.

Section A—Charitable Lead Trusts

If you, as trustee (or an employee or officer of the

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

Line 1

remain blank. If someone prepares this return without

charge, that person should not sign the return.

The information on this line is used to determine whether

sections 4943 and 4944 apply for 2005.

Generally, anyone who is paid to prepare a tax return

Line 3

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

Preparer’s Use Only area of the return.

Enter the amount for payments described in sections

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

If you have questions about whether a preparer is

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

Line 4

Enter the amount for payments permitted by Regulations

The person required to sign the return as the preparer

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

must:

•

Complete the required preparer information,

Section B—Pooled Income Funds

•

Sign it in the space provided for the preparer’s

signature (a facsimile signature is acceptable), and

Line 2

•

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

Upon termination of the income interest retained or

copy to be filed with the IRS.

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

the fund an amount equal to the value of the remainder

interest in the property upon which the income interest is

Privacy Act and Paperwork Reduction Act Notice.

based. The amount severed from the fund must either be

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

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

Internal Revenue laws of the United States. You are

charity, as provided in the governing instrument. See

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

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

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

procedures.

figure and collect the right amount of tax. Section 6109

requires return preparers to provide their identifying

Section C—Charitable Remainder Trusts

numbers on the return.

and Other Information

You are not required to provide the information

Line 2

requested on a form that is subject to the Paperwork

Reduction Act unless the form displays a valid OMB

If a charitable remainder annuity trust or certain

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

charitable remainder unitrusts pay the annuity or unitrust

instructions must be retained as long as their contents

amount after the close of the tax year, and:

may become material in the administration of any Internal

1. The payment is made within a reasonable time

Revenue law. Generally, tax returns and return

after the close of the tax year, and

information are confidential, as required by Code section

2. To the extent the payment is characterized as

6103.

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

trustee treats any income generated by the distribution as

The time needed to complete and file this form will

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

vary depending on individual circumstances. The

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

estimated average time is:

or certain unitrusts will not be deemed to have:

Recordkeeping . . . . . . . . .

65 hr., 17 min.

•

Engaged in self-dealing (section 4941),

•

Learning about the law or

Unrelated debt-financed income (section 514),

•

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

11 hr., 24 min.

Received an additional contribution (Regulations

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

Preparing the form . . . . . .

19 hr., 24 min.

•

Failed to function exclusively as a charitable remainder

Copying, assembling, and

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

sending the form to IRS . .

1 hr., 52 min.

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

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

If you have comments concerning the accuracy of

these time estimates or suggestions for making this form

Under Regulations section 1.664-1(d)(5), a distribution

simpler, we would be happy to hear from you. You can

of property (other than cash) is treated as a sale by the

write to the Internal Revenue Service, Tax Products

trust.

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

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

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

the property distribution (discussed above) on Part I of

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

Form 5227 for the current tax year.

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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