Instructions For Form 5227 - Split-Interest Trust Information Return

For sample forms of trusts that meet

Accounting Methods

B. Type of Entity

the requirements of a charitable

Trust income must be computed using

Charitable lead trust.—This is a trust

remainder unitrust, see Rev. Proc. 89-20,

the method of accounting regularly used

that pays a fixed annuity or unitrust

1989-1 C.B. 841, Rev. Proc. 90-30,

in keeping the trust’s books and records.

amount to a charitable organization for a

1990-1 C.B. 534, and Rev. Proc. 90-31,

Generally, permissible methods include

fixed number of years. Upon termination

1990-1 C.B. 539.

the cash method, the accrual method, or

of the payments, the remainder interest

For sample forms of a trust that meet

any other method authorized by the

is transferred to a noncharitable

the requirements of a charitable

Internal Revenue Code. The method

beneficiary.

remainder annuity trust, see Rev. Proc.

used must clearly reflect income.

Charitable remainder annuity trust.—

89-21, 1989-1 C.B. 842, and Rev. Proc.

Unless otherwise allowed by law, the

This is a trust under section 664(d)(1)

90-32, 1990-1 C.B. 546.

trust may not change the accounting

that pays a fixed dollar amount, at least

method used to report income (for

annually, to one or more beneficiaries, at

Rounding Off to Whole Dollars

income as a whole or for any material

least one of which is not a charitable

You may show the money items on the

item) without first getting consent on

organization, for life, or for a specified

return and accompanying schedules as

Form 3115, Application for Change in

number of years (not to exceed 20).

whole-dollar amounts. To do so, drop

Accounting Method. See Pub. 538,

Upon termination of the payments, the

amounts less than 50 cents and

Accounting Periods and Methods, for

remainder interest is transferred to a

increase any amounts from 50 to 99

more information.

charitable organization described in

cents to the next dollar.

section 170(c).

When To File

Charitable remainder unitrust.—This is

Attachments

File Form 5227 for calendar year 1994

a trust under section 664(d)(2) similar to

If you need more space, attach separate

on or before April 17, 1995.

a charitable remainder annuity trust,

sheets showing the same information in

except that it pays, at least annually, a

Extension of Time To File

the same order as on the printed forms.

fixed percentage (not less than 5%) of

Show the totals on the printed forms.

the net fair market value of the trust’s

Use Form 2758, Application for

Enter the trust’s employer

assets.

Extension of Time To File Certain Excise,

identification number on each sheet.

Income, Information, and Other Returns,

Pooled income fund.—This is a trust

Also, use sheets that are the same size

to request an extension of time to file.

under section 642(c)(5) created and

as the forms and indicate clearly the line

maintained by a charitable organization

Where To File

of the printed form to which the

described in section 170(b)(1)(A)(i)-(iv).

information relates.

Donors to the fund receive a lifetime

If the principal

Use the following

income interest and the charitable

office of the

Internal Revenue

trust

Service Center

organization receives the remainder

Specific Instructions

is located in

address

interest.

Identification Area

E. Initial Return, Final Return,

Alabama, Arkansas, Florida,

Georgia, Louisiana,

Amended Return; or Change of

Atlanta, GA 39901

If you received a Form 5227 from the

Mississippi, North Carolina,

Name or Address

IRS with a pre-addressed label, attach

South Carolina, Tennessee

the label to the name and address area

Initial Return.—Check this box if this is

Arizona, Colorado, Kansas,

of the return. If the name or address on

the initial return for the split-interest trust

New Mexico, Oklahoma,

Austin, TX 73301

the label is wrong, draw a line through

Texas, Utah, Wyoming

and enter the date that the entity was

the incorrect portion and enter the

created.

Indiana, Kentucky,

correct information.

Final Return.—Check this box if this is

Michigan, Ohio,

Cincinnati, OH 45999

If you did not receive a pre-addressed

West Virginia

a final return because the trust has

label, complete the information called for

terminated. Also, check the “Final K-1”

Alaska, California, Hawaii,

at the top of the form as it appears on

box at the top of the Schedule K-1

Idaho, Nevada, Oregon,

Fresno, CA 93888

Form SS-4, Application for Employer

Washington

(Form 1041).

Identification Number.

Amended Return.—If you are filing an

Connecticut, Maine,

Massachusetts, New

amended 1994 Form 5227, check the

Address

Holtsville, NY 00501

Hampshire, New York,

“Amended return” box. Complete the

Rhode Island, Vermont

Include the suite, room, or other unit

entire return and correct the appropriate

number after the street address.

line(s) with the new information. On an

Illinois, Iowa, Minnesota,

Missouri, Montana,

If the postal service does not deliver

attachment, explain the reason for the

Kansas City, MO 64999

Nebraska, North Dakota,

mail to the street address and the

change(s) and identify the line(s) and

South Dakota, Wisconsin

trustee has a P.O. box, show the box

amount(s) being changed.

Delaware, District of

number instead of the street address.

If the amended return results in a

Columbia, Maryland,

change to income, or a change in

New Jersey, Pennsylvania,

A. Employer Identification Number

Philadelphia, PA 19255

distribution of any income or other

Virginia, any U.S.

(EIN)

possession, or foreign

information provided to a recipient, an

country

Every trust must have an employer

amended Schedule K-1 (Form 1041)

identification number (EIN). To apply for

must be filed with the amended Form

Trust Instrument

one, use Form SS-4. You may get this

5227 and also given to each recipient.

form from the IRS or the Social Security

Check the “Amended K-1” box at the

When you file the first return for a

Administration. Form SS-4 contains

top of the Schedule K-1 (Form 1041).

charitable remainder annuity trust or

instructions on how to obtain a number

Change of Name or Address.—If there

unitrust, include:

immediately by telephone. If applying by

has been a change in the trustee’s name

1. A copy of the trust instrument; and

mail, send in the Form SS-4 at least 4 to

or address, check the appropriate box.

2. A written declaration under

5 weeks before you need the number.

penalties of perjury that it is a true and

complete copy.

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Instructions For Form 5227 - Split-Interest Trust Information Return - 1994 Page 2

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