Use a standard Form 872-H and Form 56 signed by the Form 5500 signatories to extend a trust's limitations period

Plain-English summary

This short Chief Counsel email advises how to extend the assessment limitations period for retirement trusts (including sub-trusts). The recommended approach is to use the standard Form 872-H (consent to extend the period for a trust) and Form 56 (notice of fiduciary relationship), signed by whoever signs the relevant Form 5500 (the annual retirement-plan return), using the trust name exactly as it appears on the Form 5500. No extra signature or name for any entity beyond what appears on the Form 5500 is needed, because the return controls the limitations period: either a trust is covered by the Form 5500, or it is a non-filer for which the limitations period does not apply. It is internal guidance to IRS personnel, not a ruling for any taxpayer.

Ruling snapshot

• Question: How should the IRS extend the limitations period for retirement trusts and their sub-trusts?
• Outcome: Advice given (use a standard Form 872-H and Form 56 signed by the Form 5500 signatories)
• Key authorities: Forms 872-H and 56; Form 5500

Full text (IRS public release)

ID: CCA_2021121513525250 [Third Party Communication:

UILC: 401.00-00
Date of Communication: Month DD, YYYY]

Number: 202202012
Release Date: 1/14/2022
From: ---------------------
Sent: Wednesday, December 15, 2021 11:22 PM
To: ----------------------
Cc: ------------------------------------------------
Bcc:
Subject: RE: Subtrust F.5500 info

After careful consideration, we have determined that the best way to extend the limitations period in these cases is to use the standard Form 872-H and Form 56. The forms should be signed by the signatories of the relevant 5500 forms. The name listed as the trust name should just be the name of the trust as it appears on the Form 5500, and the signatory just needs to be an entity of the trust listed on the 5500. We do not need to include a signature line or name for any entity other than what appears on the Form 5500, because the return controls the limitations period. Either a trust is covered by the Form 5500, or it is a non-filer, in which case the statute of limitation does not apply. Please let me know if you have any questions or concerns. We are happy to have a call to discuss further.

Thanks,