Filling Out IRS Form 56: Complete Line-by-Line Instructions

IRS Form 56, Notice Concerning Fiduciary Relationship, is used to notify the Internal Revenue Service (IRS) when someone acts in a fiduciary capacity on behalf of another person or entity. A fiduciary is someone appointed to manage the affairs of another, such as executors of estates, trustees of trusts, guardians, conservators, or those handling bankruptcy estates or assignments for creditors. The form alerts the IRS to this fiduciary relationship for tax matters, ensuring the fiduciary receives tax notices and information related to the person or entity they represent. This ensures proper handling and accountability of tax obligations and rights for the estate, trust, or individual under fiduciary care. The form is important for various tax types, including income, estate, gift, employment, and excise taxes. Filing this form correctly protects the fiduciary’s authority and helps avoid miscommunication with the IRS.

How to File IRS Form 56?

To file Form 56, the fiduciary completes the form with accurate information about the person or entity they represent and the nature of their fiduciary authority. The completed form should be submitted to the IRS office that handles the tax matters of the person or entity in question. This filing formally notifies the IRS of the fiduciary relationship and the fiduciary’s responsibility regarding tax obligations. Form 56 can be filed at any time after becoming a fiduciary but should be done promptly to ensure proper IRS notifications. If the fiduciary relationship ends or changes, a new Form 56 or a termination notice on the form must be filed as well.

How to Complete IRS Form 56: Line-by-Line Instructions

Part I: Identification

• Name of Person for Whom You Are Acting: Enter the full legal name of the individual or entity for whom you are acting as fiduciary. This should match the name on their tax return.
• Identifying Number: Provide the Social Security Number (SSN), Employer Identification Number (EIN), or other identifying number of the person or entity.
• Decedent’s Social Security Number: If the notice concerns a deceased person, enter the decedent’s SSN.
• Address of Person for Whom You Are Acting: Enter their complete mailing address, including street number, room or suite, city or town, state, and ZIP code. For foreign addresses, follow the IRS instructions for entering a foreign address.
• Fiduciary’s Name: Provide your full name as the fiduciary.
• Address of Fiduciary: Enter your complete mailing address, including street number, room or suite, city or town, state, and ZIP code.
• Telephone Number (Optional): Enter a phone number where you can be reached for any questions relating to the fiduciary relationship.

Section A: Authority

• 1. Authority for Fiduciary Relationship: Check the box applicable to your fiduciary capacity:
  • a. Court appointment of testate estate (valid will exists)
  • b. Court appointment of intestate estate (no valid will)
  • c. Court appointment as guardian or conservator
  • d. Fiduciary of intestate estate (without court)
  • e. Valid trust instrument and amendments
  • f. Bankruptcy or assignment for the benefit of creditors
  • g. Other (Describe the authority specifically in the space provided).
• 2a. Date of Death: If you checked 1a, 1b, or 1d, enter the date of death of the person involved.
• 2b. Date of Appointment, Taking Office or Assignment: If you checked 1c, 1e, 1f, or 1g, enter the official date when you were appointed, took office, or were assigned assets.

Section B: Nature of Liability and Tax Notices

• 3. Type of Taxes: Check all types of taxes that apply to the fiduciary relationship:
  • Income, Gift, Estate, Generation-skipping transfer, Employment, Excise, or Other (describe).
• 4. Federal Tax Form Number: Check all the IRS forms related to these tax matters:
  • a. 706 series (Estate tax forms)
  • b. 709 (Gift tax return)
  • c. 940 (Federal Unemployment Tax Act form)
  • d. 941, 943, 944 (Employment tax returns)
  • e. 1040 or 1040-SR (Individual income tax returns)
  • f. 1041 (U.S. Income Tax Return for Estates and Trusts)
  • g. 1120 (U.S. Corporation Income Tax Return)
  • h. Other (list the form number(s) applicable).
• 5. Limited Authority Period: If your fiduciary authority does not cover all years or tax periods, check this box and list the specific years or periods within your authority.

Part II: Revocation or Termination of Notice

This section is used when the fiduciary relationship ends or you want to revoke a prior notice.

Section A—Total Revocation or Termination

• 6. Total Revocation or Termination: Check this box 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.
• Reason for Termination: Check the applicable box for why the fiduciary relationship is ending:
  • a. Court order revoking fiduciary authority
  • b. Certificate of dissolution or termination of a business entity
  • c. Other (describe the reason in detail).

  Section B—Partial Revocation

  • 7a. Partial Revocation: Check this box if revoking previous notices for some but not all years or matters.
  • 7b. Specify to Whom Granted: Provide the name and address, including ZIP code, of the person or entity to whom the fiduciary authority has been partially or fully granted.

  Section C—Substitute Fiduciary

  • 8. Substitute Fiduciary: Check this box if a new fiduciary or fiduciaries have been or will be substituted for the revoking or terminating fiduciary. Provide the name(s) and address(es), including ZIP code(s), of the new fiduciary or fiduciaries.

  Part III: Court and Administrative Proceedings

  • Name of Court: Enter the full name of the court or other administrative agency overseeing the fiduciary relationship. If it’s not a court proceeding, specify the agency type and name.
  • Date Proceeding Initiated: Fill in the date when the court or agency proceeding began.
  • Address of Court: Provide the full mailing address of the court or agency.
  • Docket Number of Proceeding: Enter the case docket or file number relevant to the fiduciary matter.
  • City or Town, State, and ZIP Code: Provide the location of the court or agency.
  • Date: Enter the date relevant to the proceeding or the form completion.
  • Time: Indicate the time the proceeding is scheduled or relevant (with a.m. or p.m.).
  • Place of Other Proceedings: If there are other proceedings related to this fiduciary relationship, specify the place.

  Part IV: Signature

  • Fiduciary’s Signature: Sign the form to certify that the information provided is true, correct, and complete to the best of your knowledge.
  • Title, if applicable: If you hold a formal title related to the fiduciary role (executor, trustee, guardian, etc.), enter it here.
  • Date: Enter the date of signature.