Form 56: Notice Concerning Fiduciary Relationship

Form 56 is generally used to notify the Internal Revenue Service of the creation or termination of a fiduciary relationship involving a taxpayer.

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Introduction

Form 56, Notice Concerning Fiduciary Relationship, is generally used to notify the Internal Revenue Service when a fiduciary relationship is created or terminated. A fiduciary generally acts on behalf of another person, estate, trust, or other entity for tax-related purposes.

This guide provides general information about Form 56, including who may use the form, the information commonly needed, and the basic process for completing it. The information is intended to provide a simple overview of Form 56 and its general purpose.

What Is Form 56?

Form 56 is generally used to notify the Internal Revenue Service about the creation or termination of a fiduciary relationship. The form may be used when a person or entity becomes responsible for acting on behalf of another taxpayer for federal tax matters.

Form 56 generally identifies the taxpayer, the fiduciary, the type of fiduciary relationship, and the applicable tax matters or periods. The form may also be used to provide information about the termination of a fiduciary relationship.

Who Uses Form 56?

Form 56 is generally used by fiduciaries or other persons responsible for handling the federal tax matters of another taxpayer.

This may include individuals or entities acting as trustees, executors, administrators, receivers, guardians, conservators, or other fiduciaries when applicable. The specific use of Form 56 depends on the type of fiduciary relationship and the circumstances involved.

What Information Is Needed?

The information needed to complete Form 56 generally comes from the taxpayer’s tax records, legal documents, fiduciary records, estate or trust documents, and other applicable records. Accurate information can help identify the taxpayer and fiduciary relationship correctly.

Common information includes:

Taxpayer name
Taxpayer address
Social Security number or employer identification number
Fiduciary name
Fiduciary address
Fiduciary identification information when applicable
Type of fiduciary relationship
Date the fiduciary relationship began
Date the fiduciary relationship ended when applicable
Tax matters
Tax periods or years
Estate or trust information when applicable
Legal or fiduciary documentation
Supporting tax records

The specific information required may depend on the taxpayer, type of fiduciary relationship, tax matter, tax period, estate, trust, or other circumstances.

How to Fill Out/Complete Form 56

Form 56 is generally completed by identifying the taxpayer and fiduciary, identifying the type of fiduciary relationship, providing the applicable dates, identifying the tax matters and periods involved, providing termination information when applicable, and reviewing the completed form before submission.

The basic process is to gather the applicable taxpayer and fiduciary records, enter the identifying information, describe the fiduciary relationship, identify applicable tax matters and periods, provide termination information when applicable, review the form, and submit it according to the applicable requirements. The fiduciary should retain a copy of Form 56 and supporting records.

Section 1

Enter the taxpayer’s identifying information. This generally includes the taxpayer’s name, address, Social Security number, employer identification number, or other applicable identifying information.

The information should generally agree with the taxpayer’s tax and account records. The fiduciary should review the information carefully before completing the remaining sections.

Section 2

Enter the fiduciary’s identifying information. This generally includes the fiduciary’s name, address, and other applicable information.

The fiduciary information should generally agree with the applicable legal, estate, trust, or other fiduciary records. The information should be reviewed carefully to help ensure that the correct fiduciary is identified.

Section 3

Identify the type of fiduciary relationship. This generally involves identifying the capacity in which the fiduciary is acting on behalf of the taxpayer.

The relationship should generally be identified according to the applicable legal or fiduciary circumstances. Supporting estate, trust, court, or other records should generally be retained when applicable.

Section 4

Provide the applicable date and information concerning the creation of the fiduciary relationship. This generally identifies when the fiduciary relationship began or became applicable.

The date and related information should generally agree with the applicable legal or fiduciary records. The fiduciary should review the information carefully before submitting the form.

Section 5

Identify the tax matters and periods covered by the fiduciary relationship. This generally includes applicable tax forms, types of tax, tax periods, or other information identifying the tax matters involved.

The tax matters and periods should generally be identified accurately. The fiduciary should review the taxpayer’s tax records and applicable fiduciary documents when determining the information to report.

Section 6

Provide information concerning the termination of the fiduciary relationship when applicable. This may include the date the fiduciary relationship ended and other applicable termination information.

The termination information should generally agree with the applicable legal, estate, trust, court, or fiduciary records. Supporting documentation should generally be retained for the information reported.

Section 7

Provide any additional applicable information concerning the fiduciary relationship. This may include information needed to explain the relationship, taxpayer circumstances, tax matters, or other applicable details.

Additional information should generally be clear and consistent with the taxpayer’s records and fiduciary documentation. Only information relevant to the fiduciary relationship should generally be included.

Section 8

Review the completed Form 56 and supporting information. Check the taxpayer information, fiduciary information, type of relationship, applicable dates, tax matters, tax periods, termination information, and other applicable information.

The information should generally be consistent throughout the form and with the taxpayer’s legal, fiduciary, and tax records. Any errors or missing information should be addressed before the form is submitted.

Final Review

Review Form 56 after completing all applicable sections. Check the taxpayer information, fiduciary information, type of fiduciary relationship, applicable dates, tax matters, tax periods, termination information, supporting records, and other applicable information.

A final review can help identify errors or omissions before the notice is submitted. Fiduciaries should retain Form 56, legal records, estate or trust records, tax records, correspondence, and other documentation associated with the fiduciary relationship.

Common Mistakes

Common Form 56 mistakes may include entering incorrect taxpayer information, providing incorrect fiduciary information, or failing to properly identify the fiduciary relationship. Errors involving the type of relationship, applicable dates, tax matters, or tax periods can also affect the notice.

Other mistakes may include failing to report the creation or termination of the relationship when required, providing incomplete information, using inconsistent dates, failing to retain supporting records, leaving applicable information incomplete, or submitting the form without reviewing it. Comparing Form 56 with the taxpayer’s legal, fiduciary, estate, trust, and tax records can help identify potential errors.

Related IRS Forms

Taxpayers and fiduciaries may encounter other federal tax forms when handling estate, trust, fiduciary, representative, tax information, or other federal tax matters.

Common related forms include:

Form 2848 for certain powers of attorney and declarations of representative
Form 8821 for authorizing the release of certain tax information
Form 1041 for certain estate and trust income tax reporting
Form 706 for certain federal estate tax reporting
Form 709 for certain federal gift and generation-skipping transfer tax reporting
Form 4506 for requesting certain copies of tax returns
Form 4506-T for requesting certain tax transcripts
Form 843 for certain claims for refund and requests for abatement
Form 9465 for requesting an installment payment arrangement

The appropriate form depends on the taxpayer’s circumstances, type of fiduciary relationship, estate or trust activity, tax matter, and other applicable requirements.

Where to File or Submit

Form 56 is generally submitted according to the applicable federal procedures for notifying the Internal Revenue Service of a fiduciary relationship. The appropriate submission process can depend on the taxpayer, fiduciary relationship, tax matters, tax periods, and other applicable circumstances.

Fiduciaries should review the applicable submission requirements before submitting Form 56. A copy of the completed form, legal documents, fiduciary records, tax records, correspondence, and other supporting documentation should generally be retained for the applicable records.

Current IRS Form & Instructions

Taxpayers and fiduciaries should use the applicable version of Form 56 and its instructions when preparing a notice concerning a fiduciary relationship. Federal forms, requirements, and procedures can change, so the version used should correspond with the applicable request and circumstances.

Before submitting Form 56, review the form and applicable instructions and confirm that the taxpayer information, fiduciary information, relationship type, applicable dates, tax matters, tax periods, termination information, and other applicable information are accurate. This can help reduce errors in the fiduciary notice.

Important Information / Disclaimer

This Form 56 guide is provided for general informational purposes only and is intended to provide a basic overview of Form 56 and common information associated with notifying the Internal Revenue Service about a fiduciary relationship. This information is not tax, legal, accounting, or financial advice, and Form 56 requirements can vary depending on the taxpayer, fiduciary, estate, trust, relationship, tax matters, tax periods, and other applicable circumstances.

Taxpayers and fiduciaries are responsible for determining their applicable filing, notification, recordkeeping, representation, and tax reporting requirements. The information on this page may not cover every situation, exception, limitation, or special rule that may apply. When appropriate, taxpayers and fiduciaries should consider seeking assistance from a qualified tax professional, attorney, enrolled agent, certified public accountant, or other qualified advisor regarding their specific tax situation or Form 56 requirements.