The Statements Regarding Activities Collapsible Section

Review and update the answers to the statements regarding activities questions in Parts VI-A and VI-B of Form 5227.
Indicate whether a CRAT or CRUT earned unrelated business income (Box G in the Identification area). CRATs or CRUTs earning unrelated business income must also file Form 4720.
ONESOURCE Trust Tax does not generate Form 4720 for 5227 accounts.
You can use the
Form 5227 Information
register to review and update the answers to the Part VI-A questions, and to indicate that a CRAT or CRUT has unrelated business income. To review and update the answers to the Part VI-B questions from a register, you will need to create a custom register and add the Part VI-B questions to it. You can find the Part VI-B questions in the
5227-General Information
category under the
Detail Columns
collapsible section on the Register Properties page.

Reviewing and Updating the Answers to the Statements Regarding Activities Questions

Open the account.
Select the
Form 5227
subtopic.
Open the
Statements Regarding Activities
collapsible section.
Review the answer to each question. For each question, ONESOURCE Trust Tax defaults to
No
or does not select the check box. If you need to change an answer, select
Yes
(to indicate that the statement applies),
Leave Blank
(to indicate that the statement does not apply and to print N/A on the Form 5227 line), or select the check box (to indicate that the statement applies).
The
Expenditure Responsibility Statement
link displays if you answer
Yes
to the
If you answered yes to the question about providing a grant to a charitable organization, does the trust claim exemption from the tax because it maintained expenditure responsibility for the grant? if Yes, Expenditure Responsibility Statement is required
question. Select the
Expenditure Responsibly Statement
link to enter grantee information. After entering grantee information in the grid on the detail pop-up window, select
Save
then
Close
.
Select
Save
.

Indicating a CRAT or CRUT Has Unrelated Business Income

Open the account.
Select the Form 5227 subtopic.
Open the
Statements Regarding Activities
collapsible section.
In the
Section 664 Trusts
group box (located at the bottom of the collapsible section), select
Yes
for the
If a section 664 trust, did it have unrelated business income?
question.
Select
Save
.