IRS Error Code [F990PF-038-01]:
If Form 990-PF
, Part VII-A, Line 9 has a choice of 'Yes' indicated, then one or more of the following groups of fields in Part XIV must have a value: [ Line 3a(1)(e) and Line 3a(2)(e) ] OR Line 3b(e) OR [ Line 3c(1)(e) and Line 3c(2)(e) and Line 3c(3)(e) and Line 3c(4)(e) ].
The organization has to substantiate its claim as a private operating foundation by taking up a test that is appropriate to the section under which it is categorized- 4942(j)(3) or 4942(j)(5).
What does it mean:
As such, the organization has filed its return without taking up the recommended tests to prove its private operating foundation status. According to the IRS mandate, a private operating foundation classified under section 4942(j)(3) has to take up any of the three tests- Asset Test, Endowment Test, Support Test. Whereas, those classified under 4942(j)(5) has to take up the Endowment Test.
The organization has to take up the test appropriate to the section under which it is classified to prove its claim as a private operating foundation.
Here's how you should take up the test:
- Log in to your ExpressTaxExempt account
- Identify the rejected return either from the Dashboard or Form History.
- To identify it from the Dashboard, keep a note of the Return ID of the rejected return that you find in the rejection email.
- To identify it from the Form History page, click the Tax Returns on the menu and you'll land in the Form History page where you'll find the rejected return listed.
- In both options, you need to click on the Rejected by the IRS button found against the rejected return to find the list of errors. Then, click the Fix Me button against the error code F990PF-038-01.
- You'll land on the page where you can pick any one test that the organization wants to take.
- On the next screen, you'll find the actual details that are required for that particular test.
- Review the details, and click the Transmit button to re-transmit your return to the IRS at no additional cost.
We'll keep you informed on the status of the return once we hear back from the IRS.
For any further assistance, we recommend contacting the IRS e-Help Desk Toll-Free Number 1-866-255-0654.