If you encounter the IRS E-file Error Code F990PF-905-01, it indicates that the IRS has not recognized your organization as a private foundation, yet you have selected to file Form 990-PF, a return exclusively for private foundations. Only organizations classified as private foundations by the IRS are permitted to file Form 990-PF. Here’s what you need to know and the steps to resolve this error effectively.
What is Error Code F990PF-905-01?
Error Code F990PF-905-01 means that, while you initially selected Form 990-PF under the assumption that your organization qualifies as a private foundation, the IRS records do not align with this classification. Not all nonprofits are considered private foundations; there are specific qualifications set by the IRS. The IRS can help determine if your organization qualifies as a private foundation and needs to file Form 990-PF or if it should file a different return in the 990 series.
What Steps Should You Take?
Step 1: Review Your IRS Determination Letter and Past Filings
- IRS Determination Letter: Check your organization’s determination letter to verify its classification. This document will clearly indicate if the IRS recognizes your organization as a private foundation.
- Previously Filed Forms: If you have filed prior accepted tax forms, review these to confirm your classification.
If your documentation shows that your organization is indeed a private foundation, contact the IRS to understand why the 990-PF form was rejected. The IRS Tax Exempt Hotline is 877-829-5500. Be prepared with your EIN and organization name for quick assistance.
Step 2: Filing an Alternate Form if Necessary
If your organization’s determination letter or IRS feedback indicates that your organization is not classified as a private foundation, you can delete the rejected 990-PF form and file the appropriate return based on your organization’s financial status:
- Form 990-N: For organizations with gross receipts of $50,000 or less.
- Form 990-EZ: For organizations with gross receipts under $200,000 and total assets less than $500,000 at the year’s end.
- Form 990: For organizations with gross receipts of $200,000 or more, or total assets of $500,000 or more.
Retransmitting Rejected Returns for Free with Tax990
Once you have confirmed your organization’s IRS classification as a private foundation, you can correct and retransmit your return with Tax990 at no additional cost. If your return was rejected due to IRS errors, Tax990 allows you to fix and retransmit it free of charge, provided it’s the original return. If you are required to file an alternative return, a filing fee will apply for that form.
5 Simple Steps to Retransmit Your Rejected Return
- Log into your Tax990 account.
- Identify the rejected return on your ‘Home’ or ‘990 Series’ page.
- Click “Rejected by the IRS” to view the error list, then select “Fix Me” next to the error code.
- Follow the prompts to confirm your exempt status based on the previous filing method.
- Review your form details and click “Transmit” to send the corrected return to the IRS at no additional cost.
After retransmission, you will receive updates on the status of your return.
Ensuring Accurate and Complete Filing with Tax990
At Tax990, we simplify tax reporting with an internal audit system that flags potential errors before submission, giving you the opportunity to correct issues in advance. Our website also offers a variety of guides, blogs, and videos covering the 990 series e-filing process, while our support team is available Monday through Friday, 8:30 AM – 5:30 PM EST, via email, live chat, and phone.
Take the stress out of nonprofit filing and file with confidence using Tax990!
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