Instructions For Form 5227 (Page 2 of 15) in pdf

within the meaning of section 4946(d), who made

Which Parts To Complete

(directly or indirectly) substantially all of the

Certain Parts in the return only apply to a particular type

contributions to the trust in question.

of trust (such as a charitable remainder trust). Parts (or

7. For purposes of section 4941 (self-dealing), a

lines) that only apply to a particular type of trust are

disqualified person also includes certain government

appropriately labeled. If a Part does not reference any

officials. (See section 4946(c) and the related

particular type of trust, then the Part may be applicable to

regulations.)

all split-interest trusts. However, charitable remainder

trusts and charitable lead trusts whose charitable

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interests involve only war veterans’ posts or cemeteries

(as described in sections 170(c)(3) and 170(c)(5)) do not

If you have questions and/or need help completing this

have to complete Parts VI-A and VI-B.

form, please call 1-877-829-5500. This toll-free telephone

service is available Monday through Friday.

Definitions

Additional Information

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

•

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

For additional information on private foundations and

•

Has some unexpired interests that are devoted to

foundation managers, visit

purposes other than religious, charitable, or similar

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

•

Has amounts transferred in trust after May 26, 1969,

Other Forms You May Have To File

for which a deduction was allowed under one of the

You may also be required to file one or more of the

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

following forms.

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

•

Form 56, Notice Concerning Fiduciary Relationship.

requirements and restrictions that are imposed on private

•

Form 1041, U.S. Income Tax Return for Estates and

foundations.

Trusts.

•

Split-interest trusts are usually one of the following

Form 1041-ES, Estimated Income Tax for Estates and

types:

Trusts.

•

Charitable Remainder Trusts described in section 664,

Form 4720, Return of Certain Excise Taxes Under

•

Pooled Income Funds described in section 642(c)(5),

Chapters 41 and 42 of the Internal Revenue Code.

•

and

Form 8275, Disclosure Statement. Use this form to

•

Charitable Lead Trusts which are trusts that make

disclose items or positions (except those contrary to a

payments for charitable purposes, have at least one

regulation — see Form 8275-R, below) that are not

noncharitable beneficiary entitled to a remainder interest,

otherwise adequately disclosed on the tax return. The

and claimed a deduction under one of the sections listed

disclosure is made to avoid parts of the accuracy-related

under section 4947(a)(2).

penalty for disregard of rules or substantial

understatement of tax. Form 8275 is also used for

Recipient. A recipient is a beneficiary who receives the

disclosures relating to preparer penalties for

possession or beneficial enjoyment of the unitrust or

understatements due to unrealistic positions or for willful

annuity amount.

or reckless conduct.

Foundation manager. A foundation manager is an

•

Form 8275-R, Regulation Disclosure Statement. Use

officer, director, or trustee (or an individual who has

this form to disclose any item on a tax return for which a

powers or responsibilities similar to those of officers,

position has been taken that is contrary to Treasury

directors, or trustees). In the case of any act or failure to

regulations.

act, the term foundation manager may also include an

•

Form 8822, Change of Address.

employee of the trust who has the authority to act.

•

Form 8868, Application for Extension of Time To File

Disqualified person. A disqualified person is:

an Exempt Organization Return.

•

Form 8870, Information Return for Transfers

1. A substantial contributor;

Associated With Certain Personal Benefit Contracts.

2. A foundation manager;

3. A person who owns more than 20% of a

You can order forms and publications by calling

corporation, partnership, trust, or unincorporated

1-800-TAX-FORM (1-800-829-3676). You can also get

enterprise, which is itself a substantial contributor;

most forms and publications at your local IRS office or

4. A member of the family of an individual in the first

online at

three categories; or

5. A corporation, partnership, trust, or estate in which

Period To Be Covered by Return

persons described in (1), ( 2), (3), or (4) above own a

File Form 5227 for each calendar year. This revision of

total beneficial interest of more than 35%.

the form is for the 2007 calendar year.

6. For purposes of section 4943 (excess business

holdings), a disqualified person also includes:

Accounting Methods

a. A private foundation which is effectively controlled

(directly or indirectly) by the same persons who control

Trust income must be computed using the method of

the trust in question, or

accounting regularly used in keeping the trust’s books

b. A private foundation substantially all of the

and records. Generally, permissible methods include the

contributions to which were made (directly or

cash method, the accrual method, or any other method

indirectly) by the same person or persons described in

authorized by the Internal Revenue Code. The method

(1), (2), or (3) above, or members of their families,

used must clearly reflect income.

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Instructions For Form 5227 Page 2

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