Instructions For Form 5227 - 2016 (Page 4 of 20) in pdf

$100 for each day the failure continues with a maximum of

address, should be entered in the lines below the name of

$51,000 for any one return.

the trust.

The IRS may make a written demand that the delinquent

Address

return be filed or information be furnished specifying a time to

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

comply with the demand. If the trustee fails to comply with the

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

demand by the specified date, the trustee will be charged a

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

penalty of $10 for each day the failure continues with a

number instead.

maximum of $5,000 for any one return.

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

If the trustee required to file the return knowingly fails to

as an accountant or an attorney), enter on the street address

file the return, the same penalty that is imposed on the trust

line “C/O” followed by the third party's name and street

will also be imposed on such trustee. Also, penalties for filing

address or P.O. box.

a false or fraudulent return apply.

Trust Instrument

A. Employer Identification Number (EIN)

Every trust that completes this return must have an employer

When you file the first return for a charitable remainder

identification number (EIN). You can use one of the following

annuity trust or unitrust, or charitable lead annuity or unitrust,

methods to apply for an EIN.

include:

Online – Click on the EIN link at

1. A copy of the trust instrument, and

Small-Businesses-

&-Self-Employed. The EIN is issued

2. A written declaration under penalties of perjury that it is

immediately once the application information is validated.

a true and complete copy.

By mailing or faxing Form SS-4.

For sample forms of trusts that meet the requirements of a

Note. The online application process isn't yet available for

charitable remainder unitrust, see Rev. Procs. 2005-52

trusts with addresses in foreign countries.

through 2005-59, 2005-2 C.B. 326, 339, 353, 367, 383, 392,

402, and 412.

B. Type of Entity

Check the appropriate box to indicate the type of trust. See

For sample forms of a trust that meet the requirements of

the Definitions in the General Instructions, earlier, for detailed

a charitable remainder annuity trust, see Rev. Procs.

descriptions of the types of split-interest trust that file Form

2003-53 through 2003-60, 2003-2 C.B. 230, 236, 242, 249,

5227.

257, 262, 268, and 274.

For sample forms of trusts that meet the requirements of

D. Gross Income

an inter vivos grantor or nongrantor charitable lead annuity

Enter the trust's gross income for the tax year. Gross income

trust, see Rev. Proc. 2007-45, 2007-29 I.R.B. 89. For a

is all income from whatever source derived, including:

sample form of a trust that meets the requirements of a

Interest,

testamentary charitable lead annuity trust, see Rev. Proc.

Dividends,

2007-46, 2007-29 I.R.B. 102.

Rents (such as the amount on line 3 of Schedule E (Form

Rounding Off to Whole Dollars

1040)),

Royalties (such as the amount on line 4 of Schedule E

You may round off cents to whole dollars on your return and

(Form 1040)),

attached statements. If you do round dollars, you must round

Gross income derived from business (such as the amount

all amounts. To round, drop amounts under 50 cents and

on line 7 of Schedule C (Form 1040)), and

increase amounts from 50 to 99 cents to the next dollar. For

Gains (not losses) derived from dealings in property

example, $1.39 becomes $1 and $2.50 becomes $3.

(figured on each transaction).

If you have to add two or more amounts to figure the

E. Initial Return, Final Return, Amended Return;

amount to enter on a line, include cents when adding the

or Change of Name or Address

amounts and round off only the total.

Attachments

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

split-interest trust. Charitable remainder trusts also must

If you need more space, attach separate sheets showing the

complete line 93 and attach a copy of the trust instrument.

same information in the same order as on the printed form.

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

Show the totals on the printed form.

the trust has terminated. If the trust or a recipient's interest in

Enter the trust's name and employer identification number

the trust has terminated, check the “Final K-1” box at the top

on each sheet. Also, use sheets that are the same size as the

of the Schedule K-1 (Form 1041).

forms and indicate clearly the line of the printed form to which

For charitable remainder trusts. If you check the final

the information relates.

return box, be sure to answer the questions for lines 95a–c

and complete line 31 if you answered “Yes” to line 95b.

Specific Instructions

Amended return. If you are filing an amended 2016 Form

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

Identification Area

return and correct the appropriate lines with the new

information. On an attachment, explain the reason for the

Complete the information called for at the top of the form

changes and identify the lines and amounts being changed.

exactly as it appears on Form SS-4, Application for Employer

Identification Number. The name of the person or institution

For charitable remainder trusts. If the amended return

currently serving as trustee, and the trustee’s current

results in a change to income, or a change in distribution of

-4-

Instructions for Form 5227

Instructions For Form 5227 - 2016 Page 4

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