Form 56 is used to notify the IRS of the creation or termination of a fiduciary relationship under IRC Sec 6903 and provide the qualification for the fiduciary relationship under IRC Sec 6036.

A fiduciary is treated by the IRS as if he or she is actually the taxpayer. Upon appointment, the fiduciary automatically has both the right and the responsibility to undertake all actions the taxpayer is required to perform.

Example: The fiduciary must file tax returns and pay any taxes due on behalf of the taxpayer.

Not to be confused with an authorized representative who is treated by the IRS as the agent of the taxpayer. An authorized representative can only perform the duties authorized by the taxpayer, as indicated on a Form 2848 – Power of Attorney. An authorized representative is not required nor permitted to do anything other than the actions explicitly authorized by the taxpayer.

Form 56 cannot be used to update the last known address of the person, business, or entity for whom a fiduciary is acting. Instead, use Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party, to update the last known address.