IRS Form 56 Instructions

A fiduciary relationship is crucial in situations where the primary taxpayer is unable to handle his or her own financial or tax matters. The fiduciary duty is also important in cases where a government authority must grant permission for assets to be distributed, such as in bankruptcy proceedings or execution of a decedent’s estate. Taxpayers use IRS Form 56 to notify the IRS of situations where fiduciary responsibility is granted to another person or entity.

This article will walk you through this tax form, including:

  • When you should use Form 56
  • When other tax forms are more appropriate
  • How to complete and file IRS Form 56

Let’s start with step by step instructions on how to complete IRS Form 56.

How do I complete IRS Form 56?

There are 4 parts to this two-page tax form, which we’ll walk through step by step. Let’s start with Part I.

Part I: Identification

Aside from the identification fields at the top, there are also two sections to Part I:

Let’s start with the identifying information.

Identifying information

In this field, you’ll enter all applicable information about the taxpayer and the person assuming the fiduciary duty. This includes:

  • Taxpayer’s name and identifying number
    • You must file a separate Form 56 for each taxpayer
    • If filing a decedent’s final tax return and you are the executor of the decedent’s estate, you must file a separate form for the decedent and the decedent’s estate
  • Decedent’s Social Security number, if applicable
  • Street address, including city, state, and zip code
    • If the address is a P.O. Box, use this only if the post office does not deliver mail to the street address
    • If the address is a foreign address, list city/town, province/state, and country. Do not abbreviate the country’s name

Section A: Authority

Check the appropriate box. Below are some key points:

Testate estate

This means that a valid will exists, and an appropriate court has authorized you to perform as a representative of the decedent’s estate. Attach current letters testamentary or a court certificate as proof of your court appointment.

List the decedent’s date of death in Line 2a.

Intestate estate

The decedent passed away without a valid will in place. Attach current letters testamentary or a court certificate as proof of your court appointment.

List the decedent’s date of death in Line 2a.

Guardianship or conservator

Check this box if if a court of appropriate jurisdiction has appointed you to serve over another person or entity as one of the following:

  • Guardian
  • Custodian
  • Conservator

Enter the date of your appointment in Box 2b.

Fiduciary of intestate estate

Only check this box if:

  • There is no court appointed administrator or representative for the decedent’s estate, and
  • You are the sole person charged with the property of the decedent.

List the decedent’s date of death in Line 2a.

Valid trust instrument and amendments

Use this if you have been appointed as a trustee in a trust document.

Enter the date of your appointment in Box 2b.

Bankruptcy

Use this field if you are a bankruptcy trustee or assignee for the benefit of creditors.

Enter the date of your appointment in Box 2b.

Other

Describe the authority for the fiduciary relationship in the space provided.

Also, enter the date of your appointment in Box 2b.

Section B: Nature of Liability and Tax Notices

Use these fields to describe the following:

  • Type of taxes that are part of your fiduciary responsibility (Line 3)
  • Type of tax forms you expect to file in your fiduciary duty (Line 4)
  • Specific tax years or periods within your authority (Line 5)
    • If your fiduciary duty covers all tax periods, leave the box unchecked and the lines blank
irs form 56 part i

Part II: Revocation or Termination of Notice

Only complete Part II if revoking or terminating prior notices. Completing Section B or C does not relieve any new or substitute fiduciary of the requirement to give the IRS proper notice.

Section A: Total revocation or termination

Check this box to completely revoke or terminate all prior notices regarding fiduciary relationships. Also check the appropriate box for termination.

Section B: Partial revocation

Use this to revoke earlier notices, but would like to specify the tax matters, tax years, or tax periods that you wish to revoke.

Section C: Substitute fiduciary

Check this box if a new fiduciary or fiduciaries have been or will be substituted. Specify the name(s) and address(es) of the new fiduciary or fiduciaries.

Even after you select this option, new fiduciaries still must have a Form 56 on file with the IRS.

irs form 56, notice concerning fiduciary relationship, part ii: revocation or termination of notice

Part III: Court and Administrative Proceedings

Only complete this part if you have been appointed a receiver, trustee, or fiduciary by a court or other governmental unit in a proceeding besides a bankruptcy proceeding.

Enter the following information:

  • Name of court or agency and type of proceeding
  • Date of proceeding
  • Address of court or proceeding location
  • Docket number
  • Date and time of proceedings
notice concerning fiduciary relationship, part iii: court and administrative proceedings

Part IV: Signature

Part IV contains your signature, sworn under penalties of perjury, that this document is true, correct, and complete to the best of your knowledge.

Part IV: Signature

What is IRS Form 56?

IRS Form 56, Notice Concerning Fiduciary Relationship, is the tax form that provides the Internal Revenue Service:

Which begs the question, “What is a fiduciary relationship?”

Examples of fiduciary relationships

The IRS website cites the following examples of fiduciaries:

  • Administrators
  • Conservators
  • Designees
  • Executors
  • Guardians
  • Receivers
  • Trustees of a trust
  • Trustees in bankruptcy proceedings
  • Personal representatives
  • Persons in possession of property of a decedent’s estate, or
  • Debtors-in-possession of assets in any bankruptcy proceeding by order of the court

Difference between fiduciary and representative

Taxpayers must inform the IRS of the creation of a fiduciary relationship for a very important reason:

A fiduciary has much broader authority to perform duties on behalf of the taxpayer than someone who is simply an authorized representative of the taxpayer.

The IRS treats someone acting in a fiduciary capacity as if he or she were the actual taxpayer, not merely a personal representative or someone with power of attorney privileges. This means that the fiduciary has the rights and responsibilities (such as filing proper tax returns and paying taxes owed) of the actual taxpayer.

Conversely, an appointed representative may only have duties as specifically authorized by the taxpayer. A representative is not allowed to perform any function that the taxpayer has not explicitly authorized.

When do I NOT file IRS Form 56?

The IRS form instructions state that Form 56 is erroneously used in tax matters where different tax forms are more appropriate. Below are some of the more common examples when you should not file Form 56:

Do not use IRS Form 56 when updating an address

Instead, you should use one of the following IRS forms:

Using one of these forms is the proper way to notify the IRS of a change in address of the person listed on the tax form.

Do not use IRS Form 56 if you are an authorized representative of the taxpayer

Instead, you should file IRS Form 2848, Power of Attorney and Declaration of Representative. This form grants powers to represent the taxpayer in administrative matters before the IRS. However, the IRS does not treat the representative on Form 2848 as if he or she were the taxpayer.

By using Form 2848, the taxpayer can still dictate which duties their representative is authorized to perform.

Video walkthrough

Watch this instructional video to learn more about how to notify the IRS of your fiduciary relationship.

YouTube video

Do you use TurboTax?

If you don’t, is it because the choices are overwhelming to you?

If so, you should check out our TurboTax review page, where we discuss each TurboTax software product in depth. That way, you can make an informed decision on which TurboTax offering is the best one for you!

Click here to learn more about which TurboTax option is best for you!

Frequently asked questions

How do I file Form 56?

You should file this form with the Internal Revenue Service center or the IRS department who normally has jurisdiction over the taxpayer’s tax issues.

What is a fiduciary relationship?

According to the IRS, a fiduciary is any person in a position of confidence acting on behalf of any other person. A fiduciary assumes the powers, rights, duties, and privileges of the person or entity on whose behalf he or she is acting.

What is the difference between a fiduciary and a personal representative?

The IRS treats someone acting in a fiduciary capacity as if he or she were the actual taxpayer, not merely a personal representative or someone with power of attorney privileges. This means that the fiduciary has the rights and responsibilities (such as filing proper tax returns and paying taxes owed) of the actual taxpayer. Conversely, an appointed representative may only have duties as specifically authorized by the taxpayer. A representative is not allowed to perform any function that the taxpayer has not explicitly authorized.

When should IRS Form 56 be filed?

Generally, the IRS recommends filing Form 56 when creating or terminating a fiduciary relationship. Specifically, receivers in receivership hearings or assignees for the benefit of creditors, should file Form 56 within 10 days of meeting with the Advisory Group Manager for the IRS center with jurisdiction over the taxpayer.

Where can I find IRS Form 56?

You can find this form on the IRS website. For your convenience, the most current version is available for download at the end of this article.

What do you think?

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

8 Comments

  1. ira rubin says:

    i was on disability and they put my mom in hospice she made a will out which i still have. ic cannot even remember the address of the courthous in reno.all i can remember is i showed them the death certificate and the will on a monday and they told me to pay like eighteen dollars. i do not remember getting any papers. and the next day flew into nyc from reno so i called the irs and said i am the benefiary and they told me that records are archived and do not go that far back so we cannot tell you if your mother took her Rmd I belive that is alie. i remember they gave me no documents when i gave the clerk the 18 dollars should i enclose ac opy of the will. i went to aa tax clinic and she paid no taxes but i do not remeber if she paid an rmd.that means i am responsible. noone at wells fargo 11 years ago told me about this. form. i called wells fargo to ask them if she took theRmd and they said they do not keep records that old.i am computer illiterate got shoulder injury from covid vaccine from the idiot pharmacist at walgreens. i am now a cripple and homebound another conundrum/have tardive dystonia should i go to local irs office i hate this Internet world. i have no documents just will.ineed to know if she took her rmd the irs knows.

    1. Forrest Baumhover says:

      I’m sorry you’re going through this ordeal. As the beneficiary of your mother’s estate, you should be able to obtain information about your mother’s tax history, as well as other pertinent tax information. Here is a link to the IRS website, which should contain more information to help you out. Specifically, there is a link to an IRS page that will tell you if you need to file a tax return for your mother or not (Do I need to file a tax return), and there is a page that points out considerations when doing so (How Do I File a Deceased Person’s Tax Return).

      I wish you the best of luck.

      https://www.irs.gov/pub/irs-utl/decedent-tax-guide.pdf

  2. Hello,
    I watched your video and read through your article above.

    I need some direction regarding Form 56. Only regarding Part 1 Identification. Should be simple, yet having some issues with the IRS.

    Form #1-Form 56 for the personal/individual and their personal SS#. I have listed there last known/living address according to the death certificate. I have listed the fiduciary’s name and their address.
    Form #2-Form 56 for “The Estate” Jane A. Doe Estate-Identifying Number=EIN 00-1234567 Decedent’s Social Security #=000-00-0000.
    Now what address do I put? The Fiduciary’s address or the still the decedents address?
    On the Form 56 (Form 2) that has “Estate” on it and the EIN do the address’s need to match?
    I was told yes the form that goes to the IRS the address’s need to match but what I think I am understanding from the IRS is different. I am so confused!

    Another question. Do I also need to send along a 8822 form with these two F56 forms?

    I received a letter back from the IRS stating “The requested fiduciary is already reflected on both the decedent’s individual (SSN) account and their estate (EIN) account, but both accounts need an address change. Please complete Form 8822, Change of Address, for the SSN account and Form 8822-B, Change of Address or Responsible Party-Business, for EIN account. Use the same old and new addresses as on Form 56.”

    I hope I am making sense! Please help!
    Thank you.
    Melissa

    1. Forrest Baumhover says:

      It seems that the IRS is instructing you to file IRS Form 8822 (for the individual) and IRS Form 8822-B (estate) to reflect that the tax accounts have changed from the old address (presumably the decedent’s address) to the fiduciary’s address. If you’re already listed as the fiduciary, then you might not need to file Form 56 again.

      Below are links to some additional info on Fom 8822 and Form 8822-B:

      IRS Form 8822, Change of Address
      Article: https://www.teachmepersonalfinance.com/irs-form-8822-instructions/
      Video: https://youtu.be/s95SrGoFMoI

      IRS Form 8822-B, Change of Address or Responsible Party, Business
      Article: https://www.teachmepersonalfinance.com/irs-form-8822-b-instructions/
      Video: https://youtu.be/rxG-TBidBP4

      1. Anonymous says:

        Thank you Forrest. Do I have to fill out two F-56 forms? One with the decedent’s name, address, and social security number and one with the decedent’s name along with the word ESTATE after their name and their EIN number and SS#, to identify the individual and the estate separately?
        Or does one form take care of that?

        Thank you.
        Melissa

        1. Forrest Baumhover says:

          Melissa,

          According to the form instructions, a decedent’s estate is a taxable entity separate from the decedent that comes into existence at the time of the decedent’s death. Further in the instructions, they tell you to create 2 forms

          “if you will be filing the decedent’s final Form 1040 and are the executor/administrator of the decedent’s estate, file one Form 56 entering the name of the decedent as the person for whom you are acting and file one Form 56 entering the name of the estate as the name of the person for whom you are acting.”

          If you complete the forms as you outlined above, you should be all right.

  3. Can you share where exactly the Form 56 should be mailed to? I can’t find an address to do this to save my life.

    1. Forrest Baumhover says:

      According to the form instructions: “File Form 56 with the Internal Revenue Service Center where the person for whom you are acting is required to file tax returns.”

      With that understanding, the IRS website contains specific filing addresses for each type of tax return (i.e. 1040, 1120, 941, etc). This link gives an overview, then provides links to specific pages containing ‘Where to file’ information based upon the type of tax return:

      https://www.irs.gov/filing/where-to-file-paper-tax-returns-with-or-without-a-payment