IRS Form 56 (2022): Notice Concerning Fiduciary Relationship

What IRS Form 56 (2022) Is For

IRS Form 56 (2022) is used to notify the Internal Revenue Service (IRS) when a fiduciary appointment begins or ends. This form officially establishes the fiduciary relationship between a responsible party and a taxpayer, granting the fiduciary the authority to handle tax matters, file tax returns, and receive correspondence from the IRS. Fiduciaries, such as executors, trustees, and bankruptcy trustees, are required to provide notice concerning their fiduciary relationships when assuming duties authorized by a court appointment or legal order. Proper filing ensures the IRS recognizes who is responsible for managing the taxpayer’s financial affairs and obligations.

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When You’d Use IRS Form 56 (2022)

You file IRS Form 56 (2022) when you are legally responsible for another person’s or entity’s tax obligations under a fiduciary appointment:

• Court-appointed fiduciary: File Form 56 notice concerning fiduciary relationship when you are appointed as an executor, administrator, or trustee to manage a decedent’s estate or trust.
  
  
• Bankruptcy trustee or receiver: File the form within 10 days of your appointment when you are managing a bankruptcy proceeding or receivership proceeding in accordance with bankruptcy rules.
  
  
• Guardian or conservator: Provide notice to the IRS when you are authorized to handle the financial affairs of an incapacitated person as part of your fiduciary duties.
  
  
• Termination of fiduciary role: Submit a new Form 56 when your fiduciary responsibilities end because of a court order, replacement by another fiduciary, or completion of estate administration.
  
  
• Late or amended filings: File Form 56 as soon as possible if prior notice was not given or corrections are needed to ensure the IRS has accurate fiduciary information.

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Key Rules or Details for 2022

The 2022 version of IRS Form 56 includes updated instructions and requirements to ensure the IRS accurately records fiduciary appointments and responsibilities:

• Supporting documentation: Fiduciaries must attach court certificates, letters testamentary, or trust documents that confirm the fiduciary appointment before submitting the form.
  
  
• Identification number requirements: The taxpayer’s Social Security Number (SSN) or Employer Identification Number (EIN) must be listed, depending on whether the fiduciary represents an individual or an entity.
  
  
• Separate forms: Fiduciaries must file a separate form for each taxpayer or entity, such as filing one for the decedent’s estate and another for the individual’s income tax return.
  
  
• Address rules: The IRS Form 8822 cannot be used to change the taxpayer's mailing address; address changes must be completed using Form 8822-B.
  
  
• Filing location: The completed form should be mailed to the Internal Revenue Service Center that handles the taxpayer’s filings or to the Advisory Group Manager at the IRS area office in cases involving receiverships or bankruptcy proceedings.

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Step-by-Step (High Level)

Filing IRS Form 56 (2022) involves several structured steps that confirm your fiduciary authority and ensure proper IRS recognition:

1. Confirm fiduciary appointment: Verify that your fiduciary capacity has been established through a valid court appointment, trust instrument, or other legal authorization.
   
   
2. Gather identifying information: Collect the taxpayer’s identifying number, your own contact information, and all relevant dates associated with the fiduciary appointment.
   
   
3. Complete Part I – Identification: Enter both the taxpayer’s and fiduciary’s names, identifying numbers, and addresses to ensure the IRS can correctly match the fiduciary relationship.
   
   
4. Fill Section A and Section B: Select the appropriate box describing your fiduciary role, such as executor or trustee, and specify all applicable tax periods and tax types, including income, estate, and generation-skipping transfer taxes.
   
   
5. Attach supporting evidence: Include any required court certificates, letters, or documentation verifying your fiduciary authority in the space provided or as separate attachments.
   
   
6. Sign and mail: Provide your signature, title, and mailing address, then send the completed form to the correct IRS Service Center. Retain copies of all filed documents for your records and future reference.

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Common Mistakes and How to Avoid Them

Filing IRS Form 56 (2022) requires precision; even minor errors can cause IRS delays or incorrect fiduciary records:

• Using Form 56 to change an address: Use Form 8822 or Form 8822-B instead, since Form 56 does not serve to update the taxpayer’s mailing address or contact details.
  
  
• Confusing fiduciary authority with authorized representative: Understand that a fiduciary manages all tax responsibilities, while an authorized representative performs only specific actions explicitly authorized under Form 2848.
  
  
• Filing one form for multiple roles: File a separate Form 56 for each taxpayer or fiduciary role, such as one for a decedent’s estate and another for an individual income tax return.
  
  
• Omitting attachments: Always attach court certificates, trust instruments, or other required documentation that confirm your fiduciary appointment before submitting the form.
  
  
• Failing to file a termination notice: Submit a new Form 56 when fiduciary duties end to ensure the IRS formally terminates your fiduciary status and releases you from further responsibilities.
  
  
• Incomplete tax period details: Specify all applicable tax years and forms clearly in the space provided to avoid confusion or unauthorized actions by the IRS.

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What Happens After You File IRS Form 56 (2022)

Once the IRS receives and processes your Form 56, it updates its records to recognize your fiduciary role for the taxpayer’s financial and tax affairs. You will begin receiving tax notices, correspondence, and other communications related to the taxpayer’s obligations at your listed mailing address. As a fiduciary, you have both the right and the duty to manage tax responsibilities, file returns, and respond to IRS inquiries. When the fiduciary relationship ends, a termination notice, as outlined in Form 56, ensures that your authority is removed and all future IRS correspondence is returned to the taxpayer or the successor fiduciary.

FAQs

Who must file IRS Form 56 (2022)?

Anyone acting in a fiduciary role, such as an executor, trustee, or bankruptcy trustee, must file IRS Form 56 to notify the IRS of their fiduciary appointment and responsibilities.

Can IRS Form 56 be filed electronically?

No, the IRS requires that this form be mailed to the appropriate Internal Revenue Service Center listed on the IRS website.

How long does fiduciary authority remain active?

Your fiduciary authority continues until you file a termination notice, a court order revokes your jurisdiction, or another fiduciary replaces you.

Can multiple fiduciaries file separate forms?

Yes, each fiduciary must file their own completed form and provide identifying information so the IRS can accurately record all responsible parties.

What should I do if I made an error on my filing?

File an amended Form 56 by writing “AMENDED” at the top and submitting a corrected version with updated identifying information and relevant dates.