Can Form 5227 Be Filed Electronically?
Understand the current IRS filing protocol for Form 5227. This guide clarifies its paper-only status and provides the necessary steps for a correct submission.
Form 5227, the Split-Interest Trust Information Return, has historically been a paper-filed document. However, recent regulatory changes have shifted the filing requirements for many trusts. This return is used by entities such as Charitable Remainder Trusts (CRATs and CRUTs) and Charitable Lead Trusts to report their financial activities, including income and charitable distributions, to the Internal Revenue Service.
Current Electronic Filing Limitations
Under IRS regulations, electronic filing is now mandatory for any trust required to file 10 or more returns of any type during a single calendar year. This requirement is effective for trust tax years that end on or after December 31, 2023. The threshold is not limited to information returns and includes a broad range of forms, such as Forms 1099 and W-2.
This change means that trusts exceeding this volume can no longer submit a paper version of Form 5227. For trusts that fall below the 10-return threshold, paper filing remains a valid option. The regulations also permit a trust to request a waiver from the electronic filing requirement if it can demonstrate undue hardship.
The Required Paper Filing Process
For trusts not subject to the mandatory e-filing rule, the paper filing process remains the method of submission. The first step is to obtain the most current version of Form 5227 and its accompanying instructions directly from the IRS website. The fiduciary of the trust is responsible for ensuring the form is completed accurately and signed before mailing.
The completed and signed return must be mailed to the address specified in the official IRS instructions for Form 5227. For the 2024 tax year, the designated address is: Internal Revenue Service Center, Ogden, UT 84201-0027. Fiduciaries should always verify this address in the latest version of the form’s instructions, as the IRS can change mailing locations.
Using a trackable shipping method, such as USPS Certified Mail, is a recommended practice to secure proof of timely filing. After mailing the return, the fiduciary must retain a complete copy of the signed Form 5227 for the trust’s permanent records. This copy serves as a reference document in case of any future correspondence or inquiries from the IRS.