California Form 541-A - Trust Accumulation Of Charitable Amounts

2014 Instructions for Form 541-A

Trust Accumulation of Charitable Amounts

References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2009, and to the California Revenue and Taxation Code (R&TC) .

General Information

A split-interest trust is a trust which:

If the “Yes” box is checked, the fiduciary is

authorizing the FTB to call the paid preparer

• Is not exempt from taxation under

In general, for taxable years beginning on or

to answer any questions that may arise during

R&TC Section 23701d .

after January 1, 2010, California law conforms

the processing of its tax return . The fiduciary is

• Has some of the unexpired interests devoted

to the Internal Revenue Code (IRC) as of

also authorizing the paid preparer to:

to one or more charitable purposes as

January 1, 2009 . However, there are continuing

described in IRC Section 170(c) .

• Give the FTB any information that is missing

differences between California and federal

• Has amounts in trust for which a charitable

from the tax return .

law . When California conforms to federal tax

contributions deduction was allowed under

• Call the FTB for information about the

law changes, we do not always adopt all of

the R&TC . Pooled income funds, IRC

processing of the tax return or the status of

the changes made at the federal level . For

Section 642(c)(5); charitable remainder

any related refund or payments .

more information, go to ftb.ca.gov and search

annuity trusts, IRC Section 664(d)(1); and

• Respond to certain FTB notices about math

for conformity . Additional information can

remainder unitrusts, IRC Section 664(d)(2)

errors, offsets, and tax return preparation .

be found in FTB Pub . 1001, Supplemental

are split-interest trusts .

Guidelines to California Adjustments, the

The fiduciary is not authorizing the paid

Simple trusts which received a letter from the

preparer to receive any refund check, bind

instructions for California Schedule CA (540 or

Franchise Tax Board (FTB) granting exemption

the trust to anything (including any additional

540NR), and the Business Entity tax booklets .

from tax under R&TC Section 23701d

tax liability), or otherwise represent the trust

The instructions provided with California tax

are considered to be corporations for tax

before the FTB .

forms are a summary of California tax law

purposes . The trust may be required to file

The authorization will automatically end no

and are only intended to aid taxpayers in

Form 199, California Exempt Organization

preparing their state income tax returns . We

later than the due date (without regard to

Annual Information Return .

include information that is most useful to the

extensions) for filing the trust’s 2015 tax

Nonexempt charitable trusts, described in IRC

return . If the trust wants to expand the paid

greatest number of taxpayers in the limited

Section 4947(a)(1), must file Form 199 .

preparer’s authorization, get form FTB 3520,

space available . It is not possible to include

all requirements of the California Revenue

Power of Attorney Declaration for the Franchise

C When to File

and Taxation Code (R&TC) in the tax booklets .

Tax Board . If the trust wants to revoke the

authorization before it ends, notify the FTB in

Taxpayers should not consider the tax booklets

File Form 541-A on or before April 15, 2015 .

writing or call 800 .852 .5711 .

as authoritative law .

If you need additional time to file, California

grants an automatic six-month extension . If

A Purpose

the tax return is filed by October 15, 2015, the

Specific Instructions

Use Form 541-A, Trust Accumulation of

extension will apply .

Charitable Amounts, to report a charitable or

Additional Information.

D Where to File

other deduction under IRC Section 642(c) .

Use the Additional Information field for “In-

Care-Of” name and other supplemental address

Mail Form 541-A to:

Split-interest trusts described in IRC

information only .

Section 4947(a)(2) do not file Form 541-A .

FRANCHISE TAX BOARD

Form 541-B, Charitable Remainder and Pooled

PO BOX 942840

Foreign Address.

Income Trusts, meets R&TC Section 18635

SACRAMENTO CA 94240-0001

If the estate or trust has a foreign address

filing requirements for split-interest trusts . For

enter the city, foreign country name, foreign

Do not attach to Form 541 .

more information on split-interest trusts, get

province/state/county name, and foreign

Form 541-B .

E Internet Access

postal code in the appropriate boxes . Do not

abbreviate the foreign country name . Follow

You can download, view, and print California

B Who Must File

the country’s practice for entering the province/

tax forms and publications at ftb.ca.gov .

A trustee must file a calendar year Form 541-A

state/county name and foreign postal code .

F Signatures

for a trust that claims a charitable or other

Part II Distributions of Income

deduction under IRC Section 642(c) . Do not

The fiduciary or officer representing the

Set Aside in Prior Taxable Years

file Form 541-A if the following exceptions

fiduciary must sign Form 541-A . Any person

apply:

for Charitable Purposes

preparing the fiduciary’s tax return for

• The trustee is required by the terms of the

compensation, who is not a regular full-time

and

governing instrument and applicable local

employee of the fiduciary, must also sign

Part III Distributions of

law to currently distribute all of the income .

Form 541-A .

Principal for Charitable

• The trust is a charitable trust described in

Third Party Designee

IRC Section 4947(a)(1) .

Purposes

If the fiduciary wants to allow the FTB to

• The trust is a split-interest trust described in

discuss its 2014 tax return with the paid

IRC Section 4947(a)(2) .

Attach a statement describing in detail the

preparer who signed it, check the “Yes” box

purpose for which charitable disbursements

A charitable trust is a trust which:

in the signature area of the tax return . This

were made from income set aside in prior

• Is not exempt from taxation under R&TC

authorization applies only to the individual

taxable years and amounts which were paid

Section 23701d .

whose signature appears in the “Paid

out of principal for charitable purposes .

• Has all the unexpired interests devoted

Preparer’s Use Only” section of the tax return .

Examples of appropriate descriptions are:

to charitable purposes described in IRC

It does not apply to the firm, if any, shown in

Section 170(c) .

that section .

• Payments for nursing service .

• Had a charitable contribution deduction

• Laboratory construction .

allowed for all the unexpired interests under

• Fellowships .

the R&TC .

• Assistance to indigent families (not simply

charitable, educational, religious, or

scientific) .

Form 541-A Instructions 2014 Page 1

California Form 541-A - Trust Accumulation Of Charitable Amounts - 2014 Page 3

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