Instructions For Form 5227 - Split-Interest Trust Information Return - 1994
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72. A foundation manager;
Department of the Treasury
3. A person who owns more than 20%
Internal Revenue Service
of a corporation, partnership, trust, or
unincorporated enterprise, which is itself
a substantial contributor;
Instructions for Form 5227
4. A member of the family of an
individual in the first three categories; or
5. A corporation, partnership, trust, or
estate in which persons described in 1,
2, 3, or 4 above own a total beneficial
Split-Interest Trust Information Return
interest of more than 35%.
6. For purposes of section 4943
Section references are to the Internal Revenue Code, unless otherwise noted.
(excess business holdings), a
disqualified person also includes:
Paperwork Reduction Act Notice
Who Must File
a. A private foundation which is
effectively controlled (directly or
We ask for the information on this form
All charitable remainder trusts described
indirectly) by the same persons who
to carry out the Internal Revenue laws of
in section 664, pooled income funds
control the trust in question, or
the United States. You are required to
described in section 642(c)(5), and
give us the information. We need it to
charitable lead trusts (see “Exception”
b. A private foundation substantially all
ensure that you are complying with
below) must file Form 5227.
of the contributions to which were made
these laws and to allow us to figure and
(directly or indirectly) by the same
Exception.—Generally, a split-interest
collect the right amount of tax.
person or persons described in 1, 2, or
trust created before May 27, 1969, is not
3 above, or members of their families,
The time needed to complete and file
required to file Form 5227. However, if
within the meaning of section 4946(d),
this form will vary depending on
any amounts were transferred to the
who made (directly or indirectly)
individual circumstances. The estimated
trust after May 26, 1969, for which a
substantially all of the contributions to
average time is:
deduction was allowed under any of the
the trust in question.
sections listed under section 4947(a)(2),
Recordkeeping
46 hr., 52 min.
Form 5227 must be filed for the year of
7. For purposes of section 4941
Learning about the law
the transfer and all subsequent years
(self-dealing), a disqualified person also
or the form
3 hr., 30 min.
regardless of whether additional
includes certain government officials.
transfers are made in subsequent years.
(See section 4946(c) and the related
Preparing the form
10 hr.
regulations.)
Charitable lead trusts and charitable
Copying, assembling,
remainder trusts whose charitable
and sending the form
Additional Information
interests involve only war veterans’
to the IRS
1 hr., 37 min.
posts or cemeteries described in
For additional information on private
If you have comments concerning the
sections 170(c)(3) and 170(c)(5),
foundations and foundation managers,
accuracy of these time estimates or
respectively, are not required to
see Pub. 578, Tax Information for
suggestions for making this form
complete Parts VI and VII of Form 5227.
Private Foundations and Foundation
simpler, we would be happy to hear from
Managers, available free at most IRS
Definitions
you. You can write to both the Internal
offices. To order publications and forms,
Revenue Service, Attention: Tax Forms
call our toll-free number
A split-interest trust is a trust that:
Committee, PC:FP, Washington, DC
1-800-TAX-FORM (1-800-829-3676).
Is not exempt from tax under section
20224; and the Office of Management
501(a);
Additional Forms You May Have
and Budget, Paperwork Reduction
Has some unexpired interests that are
To File
Project (1545-0196), Washington, DC
devoted to purposes other than
20503. DO NOT send the tax form to
You may also be required to file one or
religious, charitable, or similar purposes
either of these offices. Instead, see
more of the following forms:
described in section 170(c)(2)(B); and
Where To File on page 2.
Form 56, Notice Concerning Fiduciary
Has amounts transferred in trust after
Relationship.
May 26, 1969, for which a deduction
Form 1041, U.S. Income Tax Return
was allowed under one of the Code
General Instructions
sections listed in section 4947(a)(2).
for Estates and Trusts.
Purpose of Form
Form 1041-A, U.S. Information
A split-interest trust is subject to many
Return—Trust Accumulation of
of the same requirements and
Use Form 5227 to report the financial
Charitable Amounts.
restrictions that are imposed on private
activities of a split-interest trust
foundations.
Form 1041-ES, Estimated Income Tax
described in section 4947(a)(2); and to
for Estates and Trusts.
A recipient is a beneficiary who
determine whether the trust is treated as
receives the possession or beneficial
a private foundation and is subject to
Form 4720, Return of Certain Excise
enjoyment of the unitrust or annuity
the excise taxes under Chapter 42.
Taxes on Charities and Other Persons
amount.
Under Chapters 41 and 42 of the
A charitable remainder annuity trust or
Internal Revenue Code.
A foundation manager is an officer,
unitrust is exempt from Federal income
director, or trustee (or an individual who
Form 8822, Change of Address.
tax for any tax year if it:
has powers or responsibilities similar to
Was created after July 31, 1969, and
Period To Be Covered by Return
those of officers, directors, or trustees).
Has no unrelated business taxable
In the case of any act or failure to act,
File Form 5227 for each calendar year.
income for the tax year.
the term “foundation manager” may also
This revision of the form is for the 1994
Even though the trust is exempt from
include an employee of the trust who
calendar year.
Federal income tax, it must file Form
has the authority to act.
5227 each year.
A disqualified person is:
1. A substantial contributor;
Cat. No. 13228E
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