Sometimes, things can go wrong. Fortunately, Tax990 is here to help. If you’ve encountered Error Code F990PF-902-01, keep reading to find out what you should do!
What is Error Code F990PF-902-01?
The organization doesn’t qualify for an exemption from paying excise taxes on investment income. In order to qualify, the organization should be an “Exempt Operating Foundation described in Section 4940(d)(2)” and must have registered with the IRS under foundation code “02”. This code classifies a private operating foundation as an organization exempted from paying excise taxes or investment income.
In other words, this error code means that the IRS has rejected your return because the organization has not been designated as an exempt operating foundation under section 4940(d)(2). It could be because you have submitted a determination letter to the IRS and it is still pending approval, or because your organization mistakenly chose the option to claim an exemption.
In order to qualify as an exempt operating foundation, an organization must meet the following criteria:
- Must be a private operating foundation
- Should have been publicly supported for at least ten tax years
- The organization’s governing body at any given tax year should have been made of individuals amongst which less than 25% are disqualified
- The organization didn’t have an officer who was a disqualified individual at any given tax year
- The organization must have obtained the determination letter confirming its exempt operating foundation status. In order to receive a determination letter, the organization must submit Form 8940
What should I do?
If the organization has already submitted its determination letter, it can check its status with the IRS. This can be done by calling the e-help desk toll-free at 1-866-255-0654.
If the filer accidentally claimed an exception when there wasn’t one, they can re-transmit the form to the IRS after changing the status. Here’s how you can correct the status:
- Log into your Tax990 account
- Identify the rejected return either from the Dashboard or Forms History
- From the dashboard– make a note of the Return ID of the rejected return from the rejection email
- From the forms history page– click “Tax Returns” from the menu, which will take you to the forms history page. You’ll find the rejected return listed here
- In both options, the next step is to click the “Rejected by the IRS” button found next to the rejected return to find the list of errors. Click the “Fix me” button next to the error code F990PF-902-01
- Based on the filing option you chose, you’ll be directed to the next page
- Interview-based filing: You’ll be directed to the “Type of Organization” page. Under “Domestic exempt operating foundations described in Section 4940(d)(2), select “no”
- Form-based filing: You’ll be directed to Part VI, Line 1a of Form 990-PF. In the line, uncheck the box and leave the “Date of Ruling” field blank
- Follow the instructions provided
- Review the details, then transmit the form to the IRS at no additional cost
If you need further assistance, you can contact our support team via email, phone, or live chat. We can be reached at [email protected] or (704) 839-2321. You can also contact the IRS e-help desk at the toll-free number 1-866-255-0654.
Filing with Tax990
Re-transmitting your form with Tax 990 is free and simple. In addition, Tax990’s website includes numerous guides, instructional videos, and FAQs that can help our clients with their issues.
Re-transmit your form today at Tax990.com!