Table of Contents
- Purpose of Form
- Who Must File
- Photographs of Missing Children
- Phone Help
- Additional Information
- Other Forms You May Have To File
- Period To Be Covered by Return
- Accounting Methods
- When To File
- Where To File
- Penalty for Failure To File Timely, Completely, or Correctly
- Trust Instrument
- Rounding Off to Whole Dollars
Use Form 5227 to:
Report the financial activities of a split-interest trust.
Provide certain information regarding charitable deductions and distributions of or from a split-interest trust.
Determine if the trust is treated (for Chapter 42 excise tax purposes) as a private foundation and subject to certain excise taxes under Chapter 42.
Form 5227 is open to public inspection.
Use Schedule A of Form 5227 to report:
Accumulations of income for charitable remainder trusts,
Distributions to non-charitable beneficiaries/recipients, and
Information about donors and assets contributed during the year.
Schedule A of Form 5227 isn't open for public inspection.
All charitable remainder trusts described in section 664 must file Form 5227. All pooled income funds described in section 642(c)(5) and all other trusts such as charitable lead trusts that meet the definition of a split-interest trust under section 4947(a)(2) must file Form 5227 unless the Exception (below) applies.
The split-interest trust was created before May 27, 1969, and
All transfers of corpus to the trust occurred before May 27, 1969, or
As to each and every transfer of corpus to the trust made after May 26, 1969, no deduction was allowed under any of the sections listed in section 4947(a)(2).
Regulations section 1.6012-3(a)(6) references Form 1041-B, Charitable Remainder Trust. Form 5227 replaces Form 1041-B. Regulations section 1.6034-1(c) references Form 1041-A, U.S. Information Return Trust Accumulation of Charitable Amounts. Form 5227 replaces Form 1041-A for split-interest trusts.
After 2006, a split-interest trust no longer files Form 1041-A for any purpose.
The term “split-interest trust” refers to trusts of various types. See the Definitions section of these instructions below. Certain parts of Form 5227 apply exclusively to a particular type of split-interest trust (such as a charitable remainder trust, also referred to as a “section 664 trust”). Parts or lines that apply exclusively to a particular type of split-interest trust are identified in the Instructions and on Form 5227 with a parenthetical identifying the type of trust to which the part or line applies. Parts or lines that aren't indicated as applying to a particular type of split-interest trust should be completed by every type of split-interest trust with one exception. Parts VI-A and VI-B aren't completed by a charitable remainder or charitable lead trust whose charitable interests involve only war veterans' posts or cemeteries (as described in sections 170(c)(3) and 170(c)(5)).
Is not exempt from tax under section 501(a);
Has some unexpired interests that are devoted to 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, for which a deduction was allowed under one of the sections listed in section 4947(a)(2).
A split-interest trust is subject to many of the same requirements and restrictions that are imposed on private foundations.
The most common forms of split-interest trust include the following:
A substantial contributor;
A foundation manager;
A person who owns more than 20% of a corporation, partnership, trust, or unincorporated enterprise, which is itself a substantial contributor;
A member of the family of an individual in the first three categories; or
A corporation, partnership, trust, or estate in which persons described in (1), (2), (3), or (4) above own a total beneficial interest of more than 35%.
For purposes of section 4943 (excess business holdings), a disqualified person also includes:
a. A private foundation which is effectively controlled (directly or indirectly) by the same persons who control the trust in question, or
b. A private foundation substantially all of the contributions to which were made (directly or indirectly) by the same person or persons described in (1), (2), or (3) above, or members of their families, within the meaning of section 4946(d), who made (directly or indirectly) substantially all of the contributions to the trust in question.
For purposes of section 4941 (self-dealing), a disqualified person also includes certain government officials. (See section 4946(c) and the related regulations.)
The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in instructions on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
If you have questions and/or need help completing this form, please call 1-877-829-5500. This toll-free telephone service is available Monday through Friday.
For additional information on private foundations and foundation managers, visit
You may also be required to file one or more of the following forms.
Form 56, Notice Concerning Fiduciary Relationship.
Form 1041, U.S. Income Tax Return for Estates and Trusts.
Form 1041-ES, Estimated Income Tax for Estates and Trusts.
Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code.
Form 8275, Disclosure Statement. Use this form to disclose items or positions (except those contrary to a regulation—see Form 8275-R, next) that aren't otherwise adequately disclosed on the tax return. The disclosure is made to avoid parts of the accuracy-related penalty for disregard of rules or substantial understatement of tax. Form 8275 is also used for disclosures relating to preparer penalties for understatements due to unrealistic positions or for willful or reckless conduct.
Form 8275-R, Regulation Disclosure Statement. Use this form to disclose any item on a tax return for which a position has been taken that is contrary to Treasury regulations.
Form 8822-B, Change of Address or Responsible Party—Business.
Form 8868, Application for Automatic Extension of Time To File an Exempt Organization Return.
Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts.
Form 8886, Reportable Transaction Disclosure Statement.
You can order forms and publications by downloading forms at www.irs.gov/orderforms.You can also get most forms and publications at your local IRS office or online at IRS.gov.
File Form 5227 for each calendar year. This revision of the form is for the 2016 calendar year.
Trust income must be computed using the method of accounting regularly used in keeping the trust's books and records. Generally, permissible methods include the cash method, the accrual method, or any other method authorized by the Internal Revenue Code. The method used must clearly reflect income.
Unless otherwise allowed by law, the trust may not change the accounting method used to report income (for income as a whole or for any material item) without first getting consent on Form 3115, Application for Change in Accounting Method. See Pub. 538, Accounting Periods and Methods, for more details.
File Form 5227 for calendar year 2016 by April 18, 2017. In the case of a final short-year period, the return is due by the 15th day of the 4th month following the date of the trust's termination.
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Ogden, UT 84201-0027
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Ogden, UT 84201
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The failure to file penalty under section 6652(c)(2)(C) is imposed on a split-interest trust unless the failure is due to reasonable cause. The penalty is imposed on the trust for failure to:
Timely file a return,
File a complete return, or
Furnish correct information.
The penalty is $20 for each day the failure continues with a maximum of $10,000 for any one return. However, if the trust has gross income greater than $255,000, the penalty is $100 for each day the failure continues with a maximum of $51,000 for any one return.
The IRS may make a written demand that the delinquent return be filed or information be furnished specifying a time to comply with the demand. If the trustee fails to comply with the demand by the specified date, the trustee will be charged a penalty of $10 for each day the failure continues with a maximum of $5,000 for any one return.
If the trustee required to file the return knowingly fails to file the return, the same penalty that is imposed on the trust will also be imposed on such trustee. Also, penalties for filing a false or fraudulent return apply.
When you file the first return for a charitable remainder annuity trust or unitrust, or charitable lead annuity or unitrust, include:
A copy of the trust instrument, and
A written declaration under penalties of perjury that it is a true and complete copy.
For sample forms of trusts that meet the requirements of a charitable remainder unitrust, see Rev. Procs. 2005-52 through 2005-59, 2005-2 C.B. 326, 339, 353, 367, 383, 392, 402, and 412.
For sample forms of a trust that meet the requirements of a charitable remainder annuity trust, see Rev. Procs. 2003-53 through 2003-60, 2003-2 C.B. 230, 236, 242, 249, 257, 262, 268, and 274.
For sample forms of trusts that meet the requirements of an inter vivos grantor or nongrantor charitable lead annuity trust, see Rev. Proc. 2007-45, 2007-29 I.R.B. 89. For a sample form of a trust that meets the requirements of a testamentary charitable lead annuity trust, see Rev. Proc. 2007-46, 2007-29 I.R.B. 102.
You may round off cents to whole dollars on your return and attached statements. If you do round dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.
If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total.
If you need more space, attach separate sheets showing the same information in the same order as on the printed form. Show the totals on the printed form.
Enter the trust's name and employer identification number on each sheet. Also, use sheets that are the same size as the forms and indicate clearly the line of the printed form to which the information relates.
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