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Form 5227
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This article applies to:

  • Product: ONESOURCE Trust Tax

Setting PAN or SuperBank Level Options

Options in the
Print
,
Compute-Federal
,
Compute-States
, Electronic
Fiduciary Info
 and
Paid Preparer
 categories apply to 5227 returns. The options can be set at the PAN or SuperBank level and overridden at the account level.
Set the options the first year you use ONESOURCE Trust Tax to process 5227 returns, then review and update the options as necessary each subsequent year.
To set options that apply to 5227 returns:
  1. Select
    SETUP
    ,
    Options&Overrides
     then
    PAN Level
     or
    SuperBank Level
    .
  2. Under the
    Options and Overrides
     collapsible section, apply a filter to limit the options displayed to only those that apply to 5227 returns. To apply a filter, select the filter bar below the heading of the
    Description
     column, enter
    *5227
    , press ENTER or select Filter then select
    Apply All Filters
    .
  3. Set the following options:
    Category
    Option
    Description
    Print
    Suppress print of diagnostic page on 1041, 990, and 5227 tax returns printed locally or bulk shipped
    Determines whether the diagnostic pages are printed when a 1041, 990 series or 5227 return is printed using the local print or bulk ship method. Select
    Yes
     to suppress the diagnostic pages. Select
    No
     to print the diagnostic pages.
    Print
    Suppress print of the account number on 990 and 5227 tax returns
    Determines whether the account number is suppressed or printed on the pages of your 990, 990-EZ, 990-PF or 5227 returns. The selections include:
    • Print the account number
      -The account number is printed on all pages of the return.
    • Suppress print of the account number
      -The account number is suppressed on all pages of the return.
    • Print account number on diagnostic and bar code pages only
      -The account number is printed on the diagnostic and barcode pages but is suppressed on the other return pages.
    Print
    Enter the number of characters of the account number to display for 990 and 5227 returns.
    This option allows you to mask the account number on 990 series and 5227 returns. To mask all but the last four digits of the account number, select
    4
     from the
    Drop Down value
     field.
    Print
    Supporting statements detailing revenue and expenses-5227 trusts
    For split-interest trusts, select the level of detail to generate for supporting statements that detail revenue and expense items.
    Print
    Form 5227 notation on a Schedule K-1 with no amounts
    Select the message (if any) to print on Schedule K-1 when there are no amounts to be reported.
    Print
    Do not print 5227 state returns for pooled income funds or charitable lead trusts
    Determines whether to suppress or print state 5227 returns for pooled income funds (PIFs) and charitable lead trusts (CLTs). Select
    Yes
     to suppress the state 5227 tax returns. Select
    No
     to print the state 5227 tax returns.
    Print
    5227 Balance Sheet-use expanded detail
    Allows you to use expanded balance sheet detail data for your split-interest trusts. Select
    Yes
     to use expanded balance sheet detail data. Select
    No
     if you do not want to use expanded balance sheet detail data.
    The year-end balance sheet data may be transmitted by your Trust Accounting Vendor (TAV). If it is not, you need to manually enter the year-end values in ONESOURCE Trust Tax.
    note
    Regardless of whether your TAV transmits expanded balance sheet detail data, you must set this option to
    Yes
     to use the expanded balance sheet detail.
    Compute - Federal
    Prepare 5227/1041A returns with cents
    Reports amounts on your 5227 returns as dollar and cent entries or as amounts that are rounded off to the nearest whole dollar. Select
    Yes
     to report the amounts as dollar and cent entries. Select
    No
     to round off the amounts to the nearest whole dollar.
    Compute - Federal
    Method of offsetting expenses against classes of income-5227 accounts
    Determines how expenses are allocated against various classes of taxable income, including USGI and qualified dividend income, for split-interest trusts. The selections include:
    • None, prorata among all classes of income
      -Expenses are offset equally against all classes of income.
    • Offset against net passive income last
      -Expenses are offset against all income other than net passive income first. Any excess expenses are used to offset net passive income.
    • Offset against U.S. Government Interest last
      -Expenses are offset against all income other than USGI first. Any excess expenses are used to offset USGI.
    • Offset against foreign income last
      -Expenses are offset against all income other than foreign income first. Any excess expenses are used to offset foreign income.
    • Offset against lowest marginal tax rate income last
      -Expenses are offset against all income other than income in the lowest marginal tax rate first. Any excess expenses are used to offset income in the lowest marginal tax rate.
    • Offset against lowest marginal tax rate income last and U.S. Government Interest next to last
      -Expenses are offset against all classes of income other than income in the lowest marginal tax rate first. Any excess expenses are offset against income in the lowest marginal tax rate. If excess expenses still exist, they are used to offset USGI.
    Compute - Federal
    Apply excess deductions to gains-5227 accounts
    Determines whether excess deductions are applied to capital gains and nontaxable income for split-interest trusts. Select
    Yes
     to apply excess deductions to capital gains and nontaxable income. Select
    No
     if you do not want to apply excess deductions to capital gains and nontaxable income.
    Compute - Federal
    Form 5227 Charitable Remainder Unitrusts/Annuity Trusts, create an adjustment in the ending Balance sheet for the difference between the computed unitrust/annuity amount and the total of tax code 149
    For charitable remainder unitrusts (CRUTs) and charitable remainder annuity trusts (CRATs), this option determines whether an ending balance sheet adjustment is created for the difference between the computed annuity or unitrust amount and the total of tax code 149 (Beneficiary Distributions) transactions.
    The selections include:
    • Do not create the adjustment
      -The adjustment is not created.
    • Create the adjustment
      -The adjustment is created.
    • Create the adjustment and modify tax code 149 amounts by the prior year adjustment
      -The adjustment is created and tax code 149 amounts are modified by the prior year adjustment.
    When this option is set to create an adjustment, an informational diagnostic is generated in the Miscellaneous pages of the tax return print file to alert you that the total of tax code 149 transactions differs from the calculated unitrust or annuity amount.
    Compute - Federal
    Carry Ending Undistributed Excess Deductions forward to the next tax year-5227 accounts
    Determines whether undistributed excess deductions are carried from one tax year to the next tax year. Select
    Yes
     to carry undistributed excess deductions from one tax year to the next. Select
    No
     if you do not want to carry undistributed excess deductions from one tax year to the next.
    Compute - Federal
    Include capital loss carryovers on Form 5227 Schedule D
    Applies to split-interest trusts. It determines whether capital loss carryovers are included or excluded on Form 5227 Schedule D. The selections include:
    • Do not include for any 5227 return type
      -Capital loss carryovers are excluded on Schedule D for all split-interest trust types.
    • Include for all 5227 return types
      -Capital loss carryovers are included on Schedule D for all split-interest trust types.
    • Only include for Charitable lead trusts and Pooled income funds
      -Capital loss carryovers are included on Schedule D for only CLTs and PIFs. For CRTs, capital loss carryovers are excluded on Schedule D.
    Compute - Federal
    For 5227 pooled income funds and lead trusts-Do not include loss carryovers in total gains.
    For pooled income funds (PIFs) and charitable lead trusts (CLTs), capital loss carryovers are included in total gains when this option is set to
    No
     (the default). This option also applies to California Form 541-B.
    Compute - States
    Suppress IL-1041 when processing 5227
    For split-interest trusts, this option determines whether Illinois Form IL-1041 is suppressed or printed when 5227 tax returns are processed. The default selection is
    No
    .
    When this option is set to
    No
    , Illinois Form IL-1041 is printed. When this option is set to
    Yes
    , Illinois Form IL-1041 is suppressed.
    Compute - States
    Method for computing PA-41, Schedule DD for 5227 returns
    Determines whether undistributed income is treated as a charitable deduction on Pennsylvania Form PA-41, Schedule DD.
    Electronic Filing
    Consider 5227 returns for electronic filing qualification (Option applicable beginning with 2021 tax year)
    This option is applicable beginning with tax year 2021. Select
    Yes
     to allow ONESOURCE Trust Tax to determine whether a federal 5227 return qualifies for e-filing. The determination is made when the return is processed.
    Beginning with tax year 2022, the IRS offers e-filing of federal 5227 returns, extensions and amendments. ONESOURCE Trust Tax supports e-filing for federal 5227 returns, extensions and amendments. This includes accounts that file both 1041 and 5227 returns. See E-Filing Federal and State Returns and Remitting Balance Due Payments if you want to e-file federal 5227 returns, extensions and amendments.
    Electronic Filing
    Consider 5227 situs state returns for electronic filing qualification (Refer to Customer Center for the complete list of available states) (Option applicable beginning with 2021 tax year)
    Select
    Yes
     to allow ONESOURCE Trust Tax to determine whether 5227 situs state returns qualify for e-file. Massachusetts Form 2G for 5227 returns and New Jersey Form 1041 for 5227 returns are available for e-filing beginning with tax year 2022.
    note
    Set this option to
    Yes
     before processing state tax returns. Otherwise, the returns will not be considered for e-file.
    Electronic Filing
    Consider 5227 non-situs state returns for electronic filing qualification (Refer to Customer Center for the complete list of available states) (Option applicable beginning with 2021 tax year)
    Select
    Yes
     to allow ONESOURCE Trust Tax to determine whether 5227 non-situs situs state returns qualify for e-file. Massachusetts Form 2G for 5227 returns and New Jersey Form 1041 for 5227 returns are available for e-filing beginning with tax year 2022.
    note
    Set this option to
    Yes
     before processing state tax returns. Otherwise, the returns will not be considered for e-file.
    Electronic Filing
    Does the IRS have the most current Responsible Party information on file? (Option applicable beginning with tax year 2022) Option applicable for 5227 returns
    Form 8822-B has been attached in PDF format. (Option applicable beginning with tax year 2022) Option applicable for 5227 returns
    These options are applicable to federal 5227 returns beginning with tax year 2022.
    IRS regulations require an entity with an EIN to update the responsible party information within 60 days of any change by filing Form 8822-B, Change of Address or Responsible Party. ONESOURCE Trust includes an e-filing check for the responsible party. Use these options to indicate the status of the responsible party information provided to the IRS for 5227 returns.
    No
     is the default selection. If a 5227 return is e-filed with a
    No
     selection for the
    Does the IRS have the most current Responsible Party information on file?
     option and without an attached Form 8822-B, an e-filing alert is generated but the return will not be rejected for e-filing.
    Electronic Filing
    Settlement date for state balance due payments (Does not apply to UT before 2020 or HI, MI, MO, RI for all years) [Date entered must have a four character year, i.e., MM-DD-YYYY]
    For resident and nonresident state 1041 and 5227 returns, enter the date you want to debit your checking account in the
    Settlement date for state balance due payments (Does not apply to UT before 2020 or HI, MI, MO, RI for all years) [Date entered must have a four character year, i.e. MM-DD-YYYY]
     option. A settlement date must be entered prior to processing 1041 state tax returns.
    note
    Each year, you must update the settlement date to a date in the current year. If the
    Settlement date for state balance due payments (Does not apply to UT before 2020 or HI, MI, MO, RI for all years) [Date entered must have a four character year, i.e., MM-DD-YYYY]
     Electronic Filing option does not include a current year date, then the date in the state e-file records will be revised automatically to the current year and month. The day will remain same, which may result in an invalid settlement date if the date falls on a weekend or a legal holiday.
    Fiduciary Info
    Second logo to be used (Dual logos) for 1041 and 5227 Greeting letters only. Use of second logo will prevent logos from printing on Grantor letter.
    This option is not available for 1099-processed accounts.
    Fiduciary Info
    Fiduciary Signature line (states and form 5227 only)
    For state 1041 and 5227 returns, enter the text that you want printed on the fiduciary signature line. The print location of the fiduciary signature varies based on the space available in the signature area. If there is not enough space, the fiduciary signature is not printed.
    Fiduciary Info
    First name of officer signing the return (5227 Only) (Option applicable beginning with 2022 tax year)
    Last name of officer signing the return (5227 Only) (Option applicable beginning with 2022 tax year)
    SSN of officer signing the return (5227 Only) (Option applicable beginning with 2022 tax year)
    These options apply to 5227 returns beginning with tax year 2022.
    Use these fields to enter the first name, last name and SSN of the officer signing the 5227 return.
    Paid Preparer
    Preparer Name (5227/1041A only)
    Preparer Social Security Number (5227/1041A only)
    Preparer Tax Identification Number (5227/1041A only)
    Preparer is self-employed (5227/1041A only)
    The
    Print paid preparer information on returns
     option must be set to
    Yes
     before the values for the following options print in the Paid Preparer section of Form 5227:
    • Preparer Name (5227/1041A only)
    • Preparer Tax Identification Number (5227/1041A only)
    • Preparer is self-employed (5227/1041A only)
    Regardless of how the
    Print paid preparer information on returns
     option is set, the preparer's SSN entered in the
    Preparer Social Security Number (5227/1041A only)
     option is not printed on federal Form 5227.
  4. Select
    Save
    .
  5. Clear the applied filter. Select Filter for the
    Description
     column, then select
    Clear This Filter
     or
    Clear All Filters
    .