Instructions For Form 5227 (Page 3 of 12) in pdf

termination of the payments, the remainder interest

Attachments

(valued at 10% or more) is transferred to a charitable

If you need more space, attach separate sheets showing

organization described in section 170(c), or qualified

the same information in the same order as on the printed

employer securities are transferred to an employee stock

form. Show the totals on the printed form.

ownership plan.

Enter the trust’s name and employer identification

Charitable remainder unitrust. This is a trust under

number on each sheet. Also, use sheets that are the

section 664(d)(2) similar to a charitable remainder

same size as the forms and indicate clearly the line of the

annuity trust, except that it pays, at least annually, a fixed

printed form to which the information relates.

percentage (not less than 5% but not more than 50%) of

the net fair market value of the trust’s assets.

Pooled income fund. This is a trust under section

Specific Instructions

642(c)(5) created and maintained by a charitable

organization described in section 170(b)(1)(A)(i)-(vi).

Donors to the fund receive a lifetime income interest and

Identification Area

the charitable organization receives the remainder

If you received a Form 5227 from the IRS with a peel-off

interest.

label, attach the label to the name and address area of

the return. If the name or address on the label is wrong,

E. Initial Return, Final Return, Amended

draw a line through the incorrect portion and enter the

Return; or Change of Name or Address

correct information.

Initial return. Check this box if this is the initial return for

If you did not receive a peel-off label, complete the

the split-interest trust and enter the date that the entity

information called for at the top of the form as it appears

was created.

on Form SS-4, Application for Employer Identification

Final return. Check this box if this is a final return

Number.

because the trust has terminated. If the trust or

Address

beneficiary’s interest in the trust has terminated, check

Include the suite, room, or other unit number after the

the “Final K-1” box at the top of the Schedule K-1 (Form

street address. If the Post Office does not deliver mail to

1041).

the street address and the trustee has a P.O. box, show

Amended return. If you are filing an amended 2005

the box number instead.

Form 5227, check the “Amended return” box. Complete

If you receive mail for the trust in care of a third party

the entire return and correct the appropriate lines with the

(such as an accountant or an attorney), enter on the

new information. On an attachment, explain the reason

street address line “C/O” followed by the third party’s

for the changes and identify the lines and amounts being

name and street address or P.O. box.

changed.

If the amended return results in a change to income,

A. Employer Identification Number (EIN)

or a change in distribution of any income or other

Every trust that completes this return must have an

information provided to a recipient, an amended

employer identification number (EIN). You can use one of

Schedule K-1 (Form 1041) must be filed with the

the following methods to apply for an EIN.

amended Form 5227 and a copy given to each recipient.

•

Online - Click on the EIN link at

Check the “Amended K-1” box at the top of the Schedule

businesses/small. The EIN is issued immediately once

K-1 (Form 1041).

the application information is validated.

•

Change of name or address. If there has been a

By telephone at 1-800-829-4933.

•

change in the trustee’s name or address from the one

By mailing or faxing Form SS-4, Application for

used on the prior year’s return (including a change to an

Employer Identification Number. You may get this form

“in care of” name and address), check the appropriate

from the IRS or the Social Security Administration. If you

box.

are going to apply by mail, send in the Form SS-4 at least

4 to 5 weeks before you need the number.

If the address shown on Form 5227 changes after you

If the trust has not received its EIN by the time the return

file the form (including a change to an “in care of” name

is due, write “Applied for” in the space for the EIN. For

and address) file Form 8822, Change of Address, to

more details, see Pub. 583.

notify the IRS of the change.

Note. The online application process is not yet available

F. Unrelated Business Taxable Income

for trusts with addresses in foreign countries or Puerto

(section 664 trusts only)

Rico.

If the charitable remainder trust has any unrelated

B. Type of Entity

business taxable income (within the meaning of section

512 and related regulations) for 2005, all of the trust’s

Charitable lead trust. This is a trust that pays a fixed

income is subject to the same taxes (including estimated

annuity or unitrust amount to a charitable organization for

tax payments) that are imposed on complex trusts under

a fixed number of years. Upon termination of the

Subchapter J of the Internal Revenue Code. The trust

payments, the remainder interest is transferred to a

cannot be taxed as a grantor trust.

noncharitable beneficiary.

Charitable remainder annuity trust. This is a trust

If you answer “Yes,” in addition to Form 5227, file

under section 664(d)(1) that pays a fixed dollar amount

Form 1041 (if a domestic trust). Use Form 1041 to report

(not less than 5% but not more than 50% of the initial net

all the trust’s income (not just the unrelated business

fair market value of all property placed in trust), at least

income) and its deductions (including the deduction for

annually, to one or more beneficiaries, at least one of

distributions to beneficiaries) and to compute any tax

which is not a charitable organization, for life, or for a

due. Use the regular trust rules contained in the

specified number of years (not to exceed 20). Upon

Instructions for Form 1041. You must also complete

-3-

Instructions For Form 5227 Page 3

Related Articles

Related forms

Related Categories