How to File Form 56 for Revocation of Election

When a person’s legal responsibility to manage another’s financial affairs concludes, the Internal Revenue Service (IRS) must be formally notified using Form 56, Notice Concerning Fiduciary Relationship. A fiduciary is an individual or entity, such as an executor or trustee, legally entrusted with managing the assets and tax matters of another party. While this form is used to establish a fiduciary relationship, it is also the required instrument for informing the IRS that the relationship has ended. This is considered a formal notice of termination under Internal Revenue Code section 6903.

Events Triggering Termination of Fiduciary Duty

A fiduciary’s duty is concluded by specific legal or practical events. Filing a notice of termination is necessary when these events occur, as it formally ends the fiduciary’s authority and liability for the taxpayer’s matters. Notifying the IRS also ensures that future tax correspondence is directed correctly.

Common termination events include:

• Final distribution of assets: When the executor or trustee has paid all debts, filed all necessary tax returns, and distributed the remaining property to the beneficiaries according to the will or trust document, their duties are complete.
• A court order: A judge may issue an order that officially discharges the fiduciary, such as for executors of estates or guardians, once their work is finished and a final accounting has been approved.
• A minor reaching the age of majority: If a guardian was appointed for a minor, the guardianship and the fiduciary relationship terminate by law.
• Appointment of a successor: The resignation or death of the fiduciary, followed by the formal court appointment of a successor, constitutes a termination event for the original fiduciary.

Preparing the Notice of Termination Using Form 56

You must use the most current version of Form 56, available for download on the IRS website. Using the latest revision ensures compliance with any recent changes in requirements.

In Part I, “Identification,” you must provide the name and address of the fiduciary and the identifying information for the person or entity for whom you were acting. In Part II, “Revocation or Termination of Notice,” complete Section A, “Total Revocation or Termination.” You will check the box that corresponds to the reason your fiduciary relationship has ended and enter the date the termination became effective. This date should align with the event that concluded your duties, such as the date of the court order. You must attach proof of termination, such as a copy of the court order, as the IRS will consider the notice incomplete without it.

How to File Your Notice of Termination

The IRS does not permit electronic filing for Form 56; it must be sent by mail. The completed form and all supporting documents should be mailed to the IRS Service Center where the taxpayer is required to file their tax returns. The specific mailing addresses are listed in the official instructions for Form 56.

After the IRS processes the notice, its records will be updated to reflect that your fiduciary authority has ended. Future tax notices or correspondence will be sent directly to the taxpayer or to a newly appointed fiduciary, if one has been named. The IRS does not send a confirmation receipt that it has processed your Form 56.

For your own records, keep a complete copy of the filed Form 56 and all attached documentation. You should also retain proof of mailing, such as a certified mail receipt. This creates a personal record of your compliance, documenting the official end of your responsibilities.