Instructions For Form 5227 (Page 8 of 8) in pdf

Bulletin, relating to disaster assistance. At

designated public charity, as provided in

Generally, anyone who is paid to

the time this form went to print, there

the governing instrument. See

prepare a tax return must sign the return

were no notices currently in effect relating

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

and fill in the other blanks in the Paid

to disaster assistance for “excepted”

valuation procedures.

Preparer’s Use Only area of the return.

transactions to taxable expenditures.

If you have questions about whether a

Section C—Charitable

preparer is required to sign the return,

Line 6a

Remainder Trusts and Other

please contact an IRS office.

Information

A “personal benefit contract” is, in

The person required to sign the return

general, any life insurance, annuity, or

as the preparer must complete the

Line 2

endowment contract that benefits, directly

required preparer information and:

or indirectly, a transferor, a transferor’s

•

If a charitable remainder annuity trust or

Sign it, by hand, in the space provided

family member, or a transferor designee

certain charitable remainder unitrusts pay

for the preparer’s signature. (Signature

that is not an organization described in

the annuity or unitrust amount after the

stamps and labels are not acceptable.)

section 170(c).

•

close of the tax year, and:

Give the trustee a copy of the return in

Line 6b

1. The payment is made within a

addition to the copy to be filed with the

reasonable time after the close of the tax

IRS.

Enter the total of all premiums paid by the

year, and

split-interest trust on any personal benefit

2. To the extent the payment is

contract if the payment of premiums is in

Paperwork Reduction Act Notice. We

characterized as corpus from a property

connection with a transfer for which a

ask for the information on this form to

distribution (other than cash), the trustee

deduction is not allowed under section

carry out the Internal Revenue laws of the

treats any income generated by the

170(f)(10)(A). Also, if there is an

United States. You are required to give us

distribution as occurring on the last day of

understanding or expectation that any

the information. We need it to ensure that

the tax year for which the annuity or

person will directly or indirectly pay any

you are complying with these laws and to

unitrust amount is due, then, the annuity

premium on a personal benefit contract

allow us to figure and collect the right

trust or certain unitrusts will not be

for the transferor, include those premium

amount of tax.

deemed to have:

payments in the amount entered on this

You are not required to provide the

•

line. See also Notice 2000-24, 2000-17

Engaged in self-dealing (section 4941),

information requested on a form that is

•

I.R.B. 952 (April 24, 2000).

Unrelated debt-financed income

subject to the Paperwork Reduction Act

(section 514),

unless the form displays a valid OMB

Part VII—Questionnaire

•

Received an additional contribution

control number. Books or records relating

(Regulations section 1.664-2(b) and

for Charitable Lead Trusts,

to a form or its instructions must be

1.664-3(b)), or

retained as long as their contents may

•

Pooled Income Funds, and

Failed to function exclusively as a

become material in the administration of

charitable remainder trust (Regulations

Charitable Remainder

any Internal Revenue law. Generally, tax

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

returns and return information are

Trusts

See Regulations sections

confidential, as required by Code section

1.664-2(a)(1) and 1.664-3(a)(1) for more

6103.

Section A—Charitable Lead

information.

The time needed to complete and file

Trusts

Under Regulations section

this form will vary depending on individual

1.664-1(d)(5), a distribution of property

circumstances. The estimated average

Line 1

(other than cash) is treated as a sale by

time is:

the trust.

The information on this line is used to

Recordkeeping . .

61 hr., 55 min.

determine whether sections 4943 and

Note: You must report the income (gain)

4944 apply for 2001.

generated by the property distribution

Learning about the

(discussed above) on Part I of Form 5227

law or the form . . .

11 hr., 19 min.

Line 3

for the current tax year.

Preparing the form

19 hr., 19 min.

Enter the amount for payments described

Trusts created before December 10,

in sections 170(f)(2)(B), 2055(e)(2)(B),

Copying,

1998. The election in Regulations

and 2522(c)(2)(B).

assembling, and

sections 1.664-2(a)(1)(i)(a)(2) and

sending the form to

Line 4

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

IRS . . . . . . . . . . .

1 hr., 52 min.

charitable remainder annuity trusts and

Enter the amount for payments permitted

certain charitable remainder unitrusts

by Regulations sections 1.170A-6,

If you have comments concerning the

whose annuity or unitrust amount is 15%

20.2055-2, and 25.2522(c)-3.

accuracy of these time estimates or

or less.

suggestions for making this form simpler,

Section B—Pooled Income

we would be happy to hear from you. You

Funds

Signature

can write to the Tax Forms Committee,

Western Area Distribution Center,

Form 5227 must be signed by the trustee

Line 2

Rancho Cordova, CA 95743-0001. Do

or by an authorized representative.

Upon termination of the income interest

not send the tax form to this address.

If you, as trustee (or an employee or

retained or created by a donor, the

Instead, see Where To File on page 2.

officer of the trust), fill in Form 5227, the

trustee is required to sever from the fund

Paid Preparer’s space should remain

an amount equal to the value of the

blank. If someone prepares this return

remainder interest in the property upon

without charge, that person should not

which the income interest is based. The

sign the return.

amount severed from the fund must either

be paid to, or retained for the use of, the

-8-

Instructions For Form 5227 Page 8

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