Failing to file Form 5227, the Split Interest Trust Information Return, can lead to several consequences. Since this form reports the activities of split interest trusts such as charitable remainder trusts, pooled income funds, and charitable lead trusts, omitting it may trigger IRS attention.
Potential consequences include:
- Penalties and Interest
The IRS can impose penalties for late or unfiled returns. Penalties may accumulate daily until the form is submitted, and interest may also accrue on any amounts due. - IRS Notices
If the IRS detects that a Form 5227 is missing, you may receive a notice demanding filing or requesting additional information about the trust. - Increased Audit Risk
Non filing increases the likelihood of an IRS audit. During an audit, the IRS will review the trust’s income, distributions, and charitable allocations in detail. - Impact on Deductions and Trust Compliance
Not filing Form 5227 can affect the trust’s compliance status and endanger previously claimed charitable deductions. It can also delay processing of beneficiary distributions or tax reporting.
Using TaxZerone to e-file Form 5227 ensures accurate, secure, and timely submission, helping you stay compliant and protect the trust’s charitable deductions.
What happens if i fail to submit Form 5227
Failing to file Form 5227, the Split Interest Trust Information Return, can lead to several consequences. Since this form reports the activities of split interest trusts such as charitable remainder trusts, pooled income funds, and charitable lead trusts, omitting it may trigger IRS attention.
Potential consequences include:
Penalties and Interest
The IRS can impose penalties for late or unfiled returns. Penalties may accumulate daily until the form is submitted, and interest may also accrue on any amounts due.
IRS Notices
If the IRS detects that a Form 5227 is missing, you may receive a notice demanding filing or requesting additional information about the trust.
Increased Audit Risk
Non filing increases the likelihood of an IRS audit. During an audit, the IRS will review the trust’s income, distributions, and charitable allocations in detail.
Impact on Deductions and Trust Compliance
Not filing Form 5227 can affect the trust’s compliance status and endanger previously claimed charitable deductions. It can also delay processing of beneficiary distributions or tax reporting.
Using TaxZerone to e-file Form 5227 ensures accurate, secure, and timely submission, helping you stay compliant and protect the trust’s charitable deductions.
Last modified: December 19, 2025
