Form 5227 Reporting: Mastering Compliance With Charitable Split-Interest Trusts, NIIT Calculations, and More

Practitioners filing IRS Form 5227, Split Interest Trust Information Return, often struggle with material terms in preparing the complex return. Common errors include misidentifying the type of split-interest trust, incorrectly calculating required payments to income recipients, and failing to identify trust provisions that impact the calculation of trust accounting income. Another significant preparation problem involves knowing which parts of Form 5227 must be completed, and which should be omitted.

Knowing how to read and extract information from the trust agreement is critical in determining what type of split-interest trust the donor created, and which information filings are required. For example, a CRT never requires the filing of a Form 1041; however a Form 1041 is required for a charitable lead trust (CLT) or a pooled income fund (PIF). Knowing the terms and requirements of each type of split-interest trust can help tax professionals avoid penalties for noncompliant filings.

Listen as our expert tax panel provides a detailed and comprehensive guide to completing and filing Form 5227, as well as any ancillary filings accompanying split-interest trusts.

1. Identifying the different kinds of charitable split-interest trusts
2. Filing Form 5227
3. Fiduciary accounting requirements
4. Ancillary forms
5. Identifying and avoiding common errors

The panel will explore these and other relevant issues:

• Definitions of the different types of trusts
• Trusts that require which sections of Form 5227
• Computation of annual payments
• Income-deferral opportunities
• Fiduciary accounting techniques and requirements

Learning Objectives

Upon completing this webinar, you will be able to:

• Determine the qualifications for a charitable gift annuity.
• Distinguish various types of charitable trusts.
• Recognize the applicability of “four tier” accounting.
• Identify which trusts are considered split interest trusts for purposes of form 5227.
• Discern which parts of Form 5227 apply to the various types of charitable split interest trusts.

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite:

  Three years+ business or firm experience preparing complex tax forms and schedules. Supervising other preparers/accountants. Specific knowledge and understanding of trusts, preparation of Form 5227, Split Interest Trust Information Return, trust agreement provisions and calculating required payments to income recipients. Familiarity with UBTI rules, identification of various types of charitable split interest trusts and fiduciary accounting issues

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).