Instructions For Form 5227 - 2016 printable pdf download

2016

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

If a split-interest trust created before May 27, 1969,

otherwise noted.

receives a contribution to corpus after May 26, 1969, for

which a deduction is allowed under any of the sections listed

Future Developments

in section 4947(a)(2), the trust will cease to qualify for the

exception described above. In that case, the split-interest

For the latest information about developments related to

trust must file Form 5227 for the year when the transfer to

Form 5227 and its instructions, such as legislation enacted

corpus occurs and each subsequent year, the same as any

after they were published, go to

split-interest trust created after May 26, 1969.

Reminders

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

Don't include social security numbers on publicly

1041-B, Charitable Remainder Trust. Form 5227 replaces

disclosed forms. With the exception of the items described

Form 1041-B. Regulations section 1.6034-1(c) references

below, Form 5227 and its attachments are subject to public

Form 1041-A, U.S. Information Return Trust Accumulation of

disclosure. Items not subject to disclosure include

Charitable Amounts. Form 5227 replaces Form 1041-A for

Schedule A (and any related early termination agreement);

split-interest trusts.

Schedule K-1; any K-1 continuation pages and transmittals;

the trust agreement; trust amendments; Form 926, Return by

After 2006, a split-interest trust no longer files Form

a U.S. Transferor of Property to a Foreign Corporation; Form

1041-A for any purpose.

8582, Passive Activity Loss Limitations; Form 8621,

Which Parts To Complete

Information Return by a Shareholder of a Passive Foreign

Investment Company or Qualified Electing Fund; and any

The term “split-interest trust” refers to trusts of various types.

attachment that references contributor or donor information.

See the Definitions section of these instructions below.

Certain parts of Form 5227 apply exclusively to a particular

General Instructions

type of split-interest trust (such as a charitable remainder

trust, also referred to as a “section 664 trust”). Parts or lines

Purpose of Form

that apply exclusively to a particular type of split-interest trust

are identified in the Instructions and on Form 5227 with a

Use Form 5227 to:

parenthetical identifying the type of trust to which the part or

Report the financial activities of a split-interest trust.

line applies. Parts or lines that aren't indicated as applying to

Provide certain information regarding charitable

a particular type of split-interest trust should be completed by

deductions and distributions of or from a split-interest trust.

every type of split-interest trust with one exception. Parts

Determine if the trust is treated (for Chapter 42 excise tax

VI-A and VI-B aren't completed by a charitable remainder or

purposes) as a private foundation and subject to certain

charitable lead trust whose charitable interests involve only

excise taxes under Chapter 42.

war veterans' posts or cemeteries (as described in sections

Form 5227 is open to public inspection.

170(c)(3) and 170(c)(5)).

Use Schedule A of Form 5227 to report:

Definitions

Accumulations of income for charitable remainder trusts,

Distributions to non-charitable beneficiaries/recipients, and

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

Information about donors and assets contributed during

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

the year.

Has some unexpired interests that are devoted to

Schedule A of Form 5227 isn't open for public

purposes other than religious, charitable, or similar purposes

inspection.

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

Who Must File

Has amounts transferred in trust after May 26, 1969, for

which a deduction was allowed under one of the sections

All charitable remainder trusts described in section 664 must

listed in section 4947(a)(2).

file Form 5227. All pooled income funds described in section

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

642(c)(5) and all other trusts such as charitable lead trusts

requirements and restrictions that are imposed on private

that meet the definition of a split-interest trust under section

foundations.

4947(a)(2) must file Form 5227 unless the Exception (below)

applies.

The most common forms of split-interest trust include the

following:

Exception. A split-interest trust described below isn't

required to file Form 5227.

Charitable lead trust. This is a split-interest trust that

The split-interest trust was created before May 27, 1969,

annually pays a fixed annuity or unitrust amount to a

and

charitable organization for the lead period specified in the

All transfers of corpus to the trust occurred before May 27,

trust instrument. The lead period may be a term of years or it

1969, or

may be a period determined by the lifetime of one or more

As to each and every transfer of corpus to the trust made

individuals, as described in Regulations sections

after May 26, 1969, no deduction was allowed under any of

1.170A-6(c), 20.2055-2(e)(2)(vi) and (vii), and

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

25.2522(c)-3(c)(2)(vi) and (vii). The donor to the trust will

Nov 04, 2016

Cat. No. 13228E

Instructions For Form 5227 - 2016

Related Articles

Related forms

Related Categories