What is IRS Form 56?
In order to begin or end a legal relationship of trust or confidence, also known as a fiduciary relationship, you need to file IRS Form 56 to notify the IRS. A fiduciary relationship allows one party to act in confidence on behalf of the other party; for example, a fiduciary relationship is established between an executor of an estate and the estate of a deceased party so that the trustee may administer property or resources for the decedent. Use Form 56 when the person you are acting on behalf of is required to file taxes. Most information for this form is basic and should be easily accessible to you, but you will need the SSN or EIN of both the fiduciary and the decedent. Remember, an estate is a separate tax-paying entity and must have its own tax identification number (EIN); use of the SSN of the decedent is not accurate.
