IRS Form 56: Notice Concerning Fiduciary Relationship for American Expats
- What is IRS Form 56?
- Who needs to file Form 56?
- Who does NOT need Form 56?
- When should you file Form 56?
- What are the different types of fiduciary relationships?
- How does Form 56 affect American expats specifically?
- How does Form 56 relate to other tax obligations?
- What happens when the fiduciary relationship ends?
- Common expat scenarios
- What should you do next?
IRS Form 56 notifies the IRS when you become legally responsible for someone else’s tax affairs. Whether you’re appointed executor of an estate, trustee of a trust, or guardian for someone who can’t manage their finances, Form 56 establishes your authority. It ensures the IRS communicates directly with you about tax matters.
Over 200,000 Americans file Form 56 annually, making this a well-established process with clear procedures. You’re not walking into uncharted territory.
Serving as a fiduciary while living abroad requires coordination across time zones and international borders for American expats. However, thousands of expats successfully manage these responsibilities every year, and most situations are more straightforward than they initially appear.
What is IRS Form 56?
IRS Form 56, officially titled “Notice Concerning Fiduciary Relationship,” serves two primary purposes under federal law:
- Section 6903 notification: Informs the IRS about the creation or termination of a fiduciary relationship
- Section 6036 qualification: Provides notice when certain fiduciaries (like receivers and assignees) qualify for their role
Once you file Form 56, the IRS treats you as if you are the taxpayer with full authority to handle tax returns, payments, and correspondence. This legal recognition is essential for managing someone else’s tax affairs properly.
Who needs to file Form 56?
Estate Executors and Administrators
When someone passes away, the court-appointed executor or administrator must file Form 56 to handle the deceased person’s final tax returns and estate tax obligations.
Trustees
Individuals managing assets in a trust for beneficiaries need Form 56 to establish their authority with the IRS for trust tax matters.
Guardians and Conservators
Court-appointed guardians responsible for someone’s financial affairs (often for minors or incapacitated adults) use Form 56 to manage their tax obligations.
Receivers and Assignees
Those appointed in receivership proceedings or assignments for creditor benefit must file Form 56 within 10 days of appointment.
Who does NOT need Form 56?
- Bankruptcy trustees – They follow different notice requirements under title 11 of the US Code
- Authorized representatives – Use Form 2848 (Power of Attorney) instead
- Financial institution fiduciaries – Use Form 56-F instead
When should you file Form 56?
- Standard Timeline: File Form 56 when you create or terminate a fiduciary relationship. Submit it to the IRS service center where the person you’re representing normally files tax returns.
- Urgent Timeline: Receivers and assignees must file within 10 days of appointment with the Advisory Group Manager of the appropriate IRS area office.
- With Tax Returns: Form 56 often accompanies the relevant tax return (estate, trust, or individual) to establish your authority for that filing.
Complete step-by-step guide to filling out IRS Form 56. Avoid costly mistakes and get expert help with fiduciary forms for American expats abroad.
Expat timing considerations
Living abroad doesn’t change filing deadlines, but it affects logistics. Consider express international mail services for urgent filings, and account for time zone differences when contacting IRS offices. Remember that expats get an automatic two-month extension for filing tax returns.
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What are the different types of fiduciary relationships?
Estate Administration
Managing a deceased person’s financial affairs and tax obligations. This includes filing final income tax returns, estate tax returns (if required), and distributing assets to beneficiaries.
Trust Management
Overseeing trust assets and filing annual trust tax returns. Trusts may have complex distribution requirements and multiple beneficiaries across different countries.
Guardianship and Conservatorship
Court-appointed roles to manage finances for someone unable to do so themselves. This often involves ongoing tax return preparation and asset management.
Receivership and Assignments
Managing assets in business or creditor situations. These roles often have strict reporting requirements and tight deadlines.
How does Form 56 affect American expats specifically?
Cross-Border Estate Management
When managing a US estate while living abroad, you’ll coordinate with US-based attorneys and courts, international banks holding estate assets, beneficiaries in multiple countries, and foreign tax authorities for estate assets abroad.
Trust Administration from Abroad
Serving as a trustee while living internationally involves filing US trust tax returns annually, managing distributions to beneficiaries worldwide, coordinating with foreign financial institutions, and ensuring compliance with both US and local country tax rules.
Communication Benefits
Form 56 ensures that all IRS correspondence comes directly to you as the fiduciary. This prevents important notices from being lost when the original taxpayer’s address is no longer monitored and ensures that time-sensitive tax matters receive prompt attention despite international mail delays.
How does Form 56 relate to other tax obligations?
Most expats serving as fiduciaries worry about complex tax calculations. Still, the good news is that many estates and trusts end up owing little or no US taxes after applying available exclusions and credits.
- For earned income, fiduciaries can often use the Foreign Earned Income Exclusion to exclude up to $130,000 for 2025.
- For foreign taxes paid, the Foreign Tax Credit provides dollar-for-dollar credits that often eliminate US tax liability entirely.
- If you’re behind on filings, the Streamlined Filing Compliance Procedures allow you to catch up on both personal and fiduciary tax obligations without penalties.
What happens when the fiduciary relationship ends?
Your responsibilities don’t last forever. File a termination notice when estate administration completes, trusts terminate, guardianship ends, or you’re replaced by another fiduciary.
Use Part II of Form 56 to notify the IRS of termination. This stops IRS correspondence from coming to you and transfers responsibility appropriately.
Common expat scenarios
Corporate Expat Inheritance
When a family member passes away, you’re working overseas, and they’ve named you executor. The process involves obtaining a court appointment, filing Form 56 while coordinating from abroad, managing estate assets across multiple countries, and filing final tax returns for the deceased.
Expat Entrepreneur Trust Role
Your family appoints you trustee while you’re running a business abroad. This involves annual trust tax return preparation, coordinating distributions to beneficiaries worldwide, managing trust investments across time zones, and ensuring compliance with both US and local reporting requirements.
Late Filer with New Fiduciary Duties
When you were suddenly appointed guardian, you were behind on your expat tax filings. Priority steps include addressing your personal filing compliance, establishing fiduciary authority with Form 56, and setting up systems to manage both personal and fiduciary tax obligations.
What should you do next?
Most expat fiduciary situations are more manageable than they initially appear. The key is getting proper guidance from professionals who understand both US tax law and international compliance requirements.
If you’re ready to file Form 56 or need guidance on how your fiduciary responsibilities interact with your expat tax situation, contact us, and one of our customer champions will gladly help. If you need specific advice on your tax situation, click below to get a consultation with one of our expat tax experts.
This article is for informational purposes only and does not constitute legal or tax advice. Individual situations vary, and you should consult with qualified professionals for guidance specific to your circumstances.
