Skip to main content
Form 5227
Search
Search Trust Tax (ONESOURCE) Support Help and Support.

This article applies to:

  • Product: ONESOURCE Trust Tax

Setting Up and Reviewing Basic Account Information

The
Account
 collapsible section on the Account Information page includes most of the information reported in the Identification area of Form 5227. This includes:
  • The name of the trust
  • The EIN of the trust (reported on line A)
  • The type of trust (reported on line B)
  • Whether the 5227 return is an initial, final or amended return (reported on line E)
  • The date the trust was created (reported on line F)
The trustee's name and address information (and changes to this information) are set using the Fiduciary Info options on the Options and Overrides page. The information for lines C, D and G in the Identification area of Form 5227 is accessed by selecting the
Detail
 link for
Income/Expense Overrides
 under the
General Information, Options, Overrides and Net Invest Income
 collapsible section on the Form 5227 page.
Each year, you should review the
Account
 collapsible section to ensure the type of entity and the type of 5227 trust is identified. If the trust is a CLT or PIF, indicate whether the trust is subject to I.R.C. Section 4947(a)(2) for Form 1041 purposes. You should also use the
Account
 collapsible section to ensure the situs state is correct. The situs state determines whether state 5227 processing applies and controls the state-specific forms that are generated.

Identifying the Type of Entity and the Type of 5227 Trust

Although the type of entity and the type of trust can be included in a bridge file sent from your TAV, you can use the Account Information page to select or review them. The account binder's Form 5227 page becomes accessible after the type of 5227 trust is identified and saved.
To use the Account Information page to identify the type of entity and the type of 5227 trust:
  1. Open the account. The following graphic shows the
    Account
     collapsible section and highlights the
    Type of Entity
     and
    5227 Type
     drop-down lists:
  2. Select how the trust is identified for Form 1041 purposes from the
    Type of Entity
     drop-down list. The selection you make depends on how the trust is taxed. For example:
    • Select
      N/A
       for a CRAT or CRUT.
    • Select
      Pooled income fund
       for a PIF.
    • Select
      Complex($100)
       or
      Complex($300)
       for a non-grantor CLT.
    • Select
      Grantor
       for a grantor CLT.
  4. For a CLT or PIF, identifying the trust for tax purposes marks the appropriate box on line A in the Identification area of Form 1041. For CLTs and PIFs, you need to submit two separate tax return processing requests: one to process the Form 5227, and one to process the Form 1041. When processing the Form 1041, you can process the federal and state return together or process them separately.
  5. Select the type of split-interest trust from the
    5227 Type
     drop-down list. The selections include:
    • Charitable lead trust
      -Use this selection for all forms of a CLT (for example, a nongrantor CLT, grantor CLT or charitable income trust).
    • Charitable remainder annuity trust
      -Use this selection for a CRAT.
    • Charitable remainder unitrust
      -Use this selection for all classifications of a CRUT (for example, a NICRUT, NIMCRUT or Flip-CRUT).
    • Pooled income fund
      -Use this selection for a PIF.
    • Other
      -Use this selection only when the type of split-interest trust cannot be determined. When selected, the
      5227 Entity Type Other Explanation
       field displays and must be populated with an explanation. If the explanation is not populated, the following error displays:
    • If the 5227 Type is "Other", a 5227 Type Other Explanation is required.
    • An empty explanation field does not prevent account processing in tax year 2022, and it does not reject the account from e-filing.
  7. Selecting the type of split-interest trust marks the applicable box on line B in the Identification area of Form 5227.
  8. Select
    Save
    .

Indicating that a CLT or PIF Is Subject to I.R.C. Section 4972(a)(2) for Form 1041 Purposes

CLTs and PIFs are required to designate on line E in the Identification area of Form 1041 that they are subject to I.R.C. Section 4972(a)(2). In ONESOURCE Trust Tax, the Miscellaneous Questions-Form 1041 page allows you to select the Described in sec. 4947(a)(2) box.
To indicate that a CLT or PIF is subject to I.R.C. Section 4972(a)(2):
  1. Open the account.
  2. Select the
    Additional Information and Tax Forms
     subtopic.
  3. Under the
    Form 1041 Page 1
     group box, select the
    Described in Section 4947 (a)(2)
     check box.
  4. Select
    Save
    .