CCA 200944034: Form 56 alone does not prove a trustee's signing authority
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This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2009, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.
Plain-English summary
This Chief Counsel Advice considers whether a trustee may rely on a Form 56 to sign a closing agreement for a trust. It states that a self-serving affidavit is insufficient and that Form 56 provides even less support because it is not notarized or signed under penalty of perjury. Additional proof is needed to establish that the trustee has individual authority to execute the agreement, and one signature would be insufficient if the trust instrument requires a majority of trustees to sign. For a grantor trust whose income is taxed to the grantor or beneficiary, the Advice states that the individual should sign personally rather than for the trust.
Ruling snapshot
- Question: Is a Form 56 sufficient evidence that a trustee may individually execute a closing agreement?
- Outcome: Advice given
- Key authorities: IRC § 6903; Form 56; applicable Revenue Procedure; trust instrument
Full text (IRS public release)
ID: CCA_2009081909505037 Number: 200944034
Release Date: 10/30/2009
Office: --------------
UILC: 6903.00-00
From: -------------------
Sent: Wednesday, August 19, 2009 9:50:54 AM
To: ----------------------
Cc: ---------------------------------------
Subject: RE: Trustee signature on Closing Agreement
Since the Revenue Procedure says that a self-serving affidavit is insufficient, and a Form 56 is less than even that (its not notarized or signed under penalty of perjury), I don't think you can rely on it. You would need additional proof that the trustee has the power by himself to execute a closing agreement. For instance, if the trust instrument requires a majority of the trustees to sign, one signature would be insufficient.
If this is a grantor trust in which everything is taxed to the grantor/beneficiary, that person should sign for himself rather than for the trust since the trust would not be a taxable entity.
--------------------- and -- have jurisdiction over section 6903, so you may want to confirm this with them.
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