Instructions For Form 5227 (Page 11 of 12) in pdf

If you have questions about whether a preparer is

Section C—Charitable Remainder Trusts

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

and Other Information

The person required to sign the return as the preparer

Line 2

must complete the required preparer information and:

•

If a charitable remainder annuity trust or certain

Sign it in the space provided for the preparer’s

charitable remainder unitrusts pay the annuity or unitrust

signature.

amount after the close of the tax year, and:

•

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

1. The payment is made within a reasonable time

copy to be filed with the IRS.

after the close of the tax year, and

2. To the extent the payment is characterized as

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

Paperwork Reduction Act Notice. We ask for the

trustee treats any income generated by the distribution as

information on this form to carry out the Internal Revenue

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

laws of the United States. You are required to give us the

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

information. We need it to ensure that you are complying

or certain unitrusts will not be deemed to have:

with these laws and to allow us to figure and collect the

•

Engaged in self-dealing (section 4941),

right amount of tax.

•

Unrelated debt-financed income (section 514),

•

You are not required to provide the information

Received an additional contribution (Regulations

requested on a form that is subject to the Paperwork

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

•

Reduction Act unless the form displays a valid OMB

Failed to function exclusively as a charitable remainder

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

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

instructions must be retained as long as their contents

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

may become material in the administration of any Internal

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

Revenue law. Generally, tax returns and return

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

information are confidential, as required by Code section

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

6103.

trust.

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

The time needed to complete and file this form will

the property distribution (discussed above) on Part I of

vary depending on individual circumstances. The

Form 5227 for the current tax year.

estimated average time is:

Trusts created before December 10, 1998. The

Recordkeeping . . . . . . . . .

62 hr., 24 min.

election in Regulations sections 1.664-2(a)(1)(i)(a)(2) and

Learning about the law or

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

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

11 hr., 19 min.

remainder annuity trusts and certain charitable remainder

unitrusts whose annuity or unitrust amount is 15% or

Preparing the form . . . . . .

19 hr., 20 min.

less.

Copying, assembling, and

sending the form to IRS . .

1 hr., 52 min.

Signature

Form 5227 must be signed by the trustee or by an

If you have comments concerning the accuracy of

authorized representative.

these time estimates or suggestions for making this form

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

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

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

write to the Tax Products Coordinating Committee,

remain blank. If someone prepares this return without

Western Area Distribution Center, Rancho Cordova, CA

charge, that person should not sign the return.

95743-0001. Do not send the tax form to this address.

Generally, anyone who is paid to prepare a tax return

Instead, see Where To File on page 2.

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

Preparer’s Use Only area of the return.

-11-

Instructions For Form 5227 Page 11

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