Instructions For Form 5227 (Page 3 of 15) in pdf

Unless otherwise allowed by law, the trust may not

If the trustee required to file the return knowingly fails

change the accounting method used to report income (for

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

income as a whole or for any material item) without first

trust will also be imposed on such trustee. Also, penalties

getting consent on Form 3115, Application for Change in

for filing a false or fraudulent return apply.

Accounting Method. See Pub. 538, Accounting Periods

and Methods, for more details.

Trust Instrument

When you file the first return for a charitable remainder

When To File

annuity trust or unitrust, or charitable lead annuity or

File Form 5227 for calendar year 2007 by April 15, 2008.

unitrust, include:

Extension of Time To File. Use Form 8868 to request

1. A copy of the trust instrument, and

an automatic 3-month extension of time to file. The

2. A written declaration under penalties of perjury that

request for an automatic extension must be filed by the

it is a true and complete copy.

due date of the return. After receiving an automatic

3-month extension, you can also use Form 8868 to apply

For sample forms of trusts that meet the requirements

for an additional (not automatic) 3-month extension. The

of a charitable remainder unitrust, see Rev. Procs.

request for an additional 3-month extension must be filed

2005-52 through 2005-59, 2005-2 C.B. 326, 339, 353,

by the extended due date of the return.

367, 383, 392, 402, and 412.

Where To File

For sample forms of a trust that meet the requirements

of a charitable remainder annuity trust, see Rev. Procs.

File Form 5227 at the following address:

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

Department of the Treasury

249, 257, 262, 268, and 274.

Internal Revenue Service Center

For sample forms of trusts that meet the requirements

Ogden, UT 84201-0027

of an inter vivos grantor or nongrantor charitable lead

Private delivery services (PDSs). In addition to the

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

United States mail, exempt organizations can use certain

For a sample form of a trust that meets the requirements

private delivery services designated by the IRS to meet

of a testamentary charitable lead annuity trust, see Rev.

the “timely mailing as timely filing/paying” rule for tax

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

returns and payments. These private delivery services

include only the following.

•

Rounding Off to Whole Dollars

DHL Express (DHL): DHL Same Day Service, DHL

Next Day 10:30 am, DHL Next Day 12:00 pm, DHL Next

You may round off cents to whole dollars on your return

Day 3:00 pm, and DHL 2nd Day Service.

and schedules. If you do round dollars, you must round

•

Federal Express (FedEx): FedEx Priority Overnight,

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

FedEx Standard Overnight, FedEx 2Day, FedEx

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

International Priority, and FedEx International First.

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

•

United Parcel Service (UPS): UPS Next Day Air, UPS

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

Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air

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

A.M., UPS Worldwide Express Plus, and UPS Worldwide

amounts and round off only the total.

Express.

The private delivery service can tell you how to get

Attachments

written proof of the mailing date.

If you need more space, attach separate sheets showing

Penalty for Failure To File Timely,

the same information in the same order as on the printed

form. Show the totals on the printed form.

Completely, or Correctly

Enter the trust’s name and employer identification

The failure to file penalty under section 6652(c)(2)(C) is

number on each sheet. Also, use sheets that are the

imposed on a split-interest trust unless the failure is due

same size as the forms and indicate clearly the line of the

to reasonable cause. The penalty is imposed on the trust

printed form to which the information relates.

for failure to:

•

Timely file a return,

•

File a complete return, or

•

Specific Instructions

Furnish correct information.

The penalty is $20 for each day the failure continues

with a maximum of $10,000 for any one return. However,

Identification Area

if the trust has gross income greater than $250,000, the

If you received a Form 5227 from the IRS with a peel-off

penalty is $100 for each day the failure continues with a

label, attach the label to the name and address area of

maximum of $50,000 for any one return.

the return. If the name or address on the label is wrong,

The IRS may make a written demand that the

draw a line through the incorrect portion and enter the

delinquent return be filed or information be furnished

correct information.

specifying a time to comply with the demand. If the

trustee fails to comply with the demand by the specified

If you did not receive a peel-off label, complete the

date, the trustee will be charged a penalty of $10 for each

information called for at the top of the form as it appears

day the failure continues with a maximum of $5,000 for

on Form SS-4, Application for Employer Identification

any one return.

Number.

-3-

Instructions For Form 5227 Page 3

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