Fillable Form 56

What is Form 56?

Form 56, Notice Concerning Fiduciary Relationship, is an IRS form used to notify the Internal Revenue Service (IRS) that an individual or entity is acting in a fiduciary capacity on behalf of another taxpayer. A fiduciary relationship typically occurs when someone, such as an executor, trustee, or guardian, is legally responsible for managing the financial or tax matters of another person or entity, such as a deceased individual, a minor, or an estate.

A fiduciary should use Form 56 to notify the appropriate Internal Revenue Service Center whenever they assume their fiduciary duties. This includes situations where an executor, trustee, or guardian needs to manage the financial affairs of another individual or entity and handle various tax forms on their behalf.

The form requires the fiduciary to provide information such as the employer identification number (EIN) of the entity they are managing and must also cite the respective collection advisory group numbers. Furthermore, it confirms the fiduciary's authority by detailing their role, whether as a personal representative or an authorized representative.

It's important for the fiduciary to correctly identify their responsibilities and navigate the necessary tax forms to ensure compliance with IRS regulations. Collaboration with an advisory group manager can aid in meeting these duties effectively.

How do I fill out Form 56?

A fillable template for Form 56 can be accessed here.

Part I - Identification

Name

Enter the name of the person for whom you are acting.

Identifying Number

Enter said person’s identifying number.

Decedent’s Social Security Number

Enter the SSN of the decedent.

Address

Enter the following information for the person you are acting for’s address:

• Street Address
• Room or Suite Number
• City or Town
• State
• ZIP Code

Fiduciary’s Name

Enter the name of the fiduciary.

Address of Fiduciary

Enter the following information about the fiduciary’s address:

• Street Address
• Room or Suite Number
• City or Town
• State

Section A - Authority

Mark each applicable box that applies to the authority being granted for the fiduciary relationship.

1. Authority for fiduciary relationship
   1. Court appointment of testate estate (valid will exists)
   2. Court appointment of intestate estate (no valid will exists)
   3. Court appointment as guardian or conservator
   4. Valid trust instrument and amendments
   5. Bankruptcy or assignment for the benefit or creditors
   6. Other (describe in the space provided)
2. Boxes checked
   1. If box 1a or 1b is checked, enter the date of death
   2. If box 1c-1f is checked, enter the date of appointment, taking office or assignment or transfer of assets

Section B - Nature of Liability and Tax Notices

Type of Taxes

Mark all boxes that apply to the type of taxes you are managing.

• Income
• Gift
• Estate
• Generation-skipping transfer
• Employment
• Excise
• Other (describe in the space provided)

Federal Tax Form Number

Mark all boxes that apply to the tax form number(s) you are filing.

• 706 series
• 709
• 940
• 941, 943, 944
• 1040, 1040-A, 1040-EZ
• 1041
• 1120
• Other (list in the space provided)

Authority Periods

If your authority as a fiduciary does not cover all years or tax periods, mark the box provided and list the specific years or periods you have been given authority for.

Part II - Revocation or Termination of Notice

Section A - Total Revocation or Termination

Mark the box provided if you are revoking or terminating all prior notices concerning fiduciary relationships on file with the IRS for the same tax matters and years or periods covered by this notice. Then, mark the below box that applies:

• Court order revoking fiduciary authority
• Certificate of dissolution or termination of a business entity
• Other (describe in the space provided)

Section B - Partial Revocation

Mark the box provided if you are revoking earlier notes concerning fiduciary relationships on file with the IRS for the same tax matters and years or periods covered by this notice. Then, if you do, specify to whom this was granted, alongside date granted and address of recipient.

Section C - Substitute Fiduciary

Mark the box provided if a new fiduciary or fiduciaries have been or will be substituted for the revoking or terminating fiduciary. Specify the names and addresses, including ZIP Code, of all the new fiduciaries.

Part III - Court and Administrative Proceedings

Enter the following information about the court you are filing this form at and the administrative proceedings.

• Name of court
  • If this is not a court proceeding, identify the type of proceeding and name of agency
• Date proceeding initiated
• Address of court
• Docket number of proceeding
• Date
• Time
• Place of other proceedings

Part IV - Signature

Have the fiduciary sign the form in the space provided, then enter their title (if applicable) and the date that the form was signed.

Frequently Asked Questions (FAQs)

When should Form 56 be filed?

Form 56 should be filed as soon as the fiduciary relationship begins. For example, it must be filed when someone is appointed as an executor or trustee.

What happens if you don’t file Form 56?

If Form 56 is not filed, the IRS may not recognize the fiduciary and may continue to contact the original taxpayer or other parties for tax matters. This could cause delays or confusion in tax processing.

Can Form 56 be filed electronically?

No, Form 56 must be filed by mail with the IRS. The address depends on the location and type of taxpayer involved.

What information is required on Form 56?

The form requires details about the fiduciary, the person or entity being represented, the type of fiduciary relationship, and the specific tax matters being handled. It also includes information about when the relationship began.

What types of fiduciaries must file Form 56?

Executors, trustees, guardians, receivers, and administrators are common types of fiduciaries required to file Form 56. It applies to anyone who has legal authority over another’s tax matters.

Can multiple fiduciaries be listed on Form 56?

No, each fiduciary must file their own Form 56. If there are co-fiduciaries, each must file separately with the IRS.

How does the IRS use the information from Form 56?

The IRS uses the information to ensure they communicate directly with the fiduciary regarding tax matters of the person or entity being represented. It ensures that the fiduciary receives important tax documents and notices.

How does a fiduciary end their relationship with the IRS?

When the fiduciary relationship ends, the fiduciary must file Form 56 again, indicating the termination of the fiduciary relationship. This informs the IRS to stop sending tax-related communications to the fiduciary.

What happens if the fiduciary relationship changes, such as appointing a new executor?

If there is a change in fiduciary, the new fiduciary must file a new Form 56 with the IRS. The old fiduciary must also file a termination of their fiduciary role using the form.

Is Form 56 required for an estate?

Yes, an executor or administrator of an estate must file Form 56 to notify the IRS that they are managing the estate’s tax affairs. This ensures the IRS communicates with the executor regarding the estate’s taxes.

Can Form 56 be used for both personal and business tax matters?

Yes, Form 56 can be filed for both individual taxpayers and entities, such as estates, trusts, or corporations. The form applies to any fiduciary role involving tax matters.

How does a trustee use Form 56?

A trustee files Form 56 to inform the IRS that they are responsible for managing the trust’s tax obligations. This ensures the IRS recognizes the trustee as the point of contact for the trust’s tax filings and payments.

What is the difference between Form 56 and Form 2848 (Power of Attorney)?

Form 56 is used to notify the IRS of a fiduciary relationship, while Form 2848 grants an individual the authority to represent another taxpayer before the IRS. Form 2848 does not imply a fiduciary role but provides legal representation.

Do guardians need to file Form 56?

Yes, guardians managing the financial or tax matters of a minor or incapacitated person must file Form 56. It informs the IRS that the guardian is responsible for the individual’s tax obligations.

Can a fiduciary make tax payments on behalf of the person they represent?

Yes, a fiduciary can make tax payments, file tax returns, and manage other tax matters on behalf of the taxpayer. Form 56 notifies the IRS that the fiduciary has this authority.