[E-file Error Code F990PF-006-01] How do I resolve it?
190 views | Last modified 4/13/2021 3:30:36 AM EST | Added by ExpressTaxExempt Team

Applicable To
990-PF 990-N 990-EZ 990 8868 1120-POL

IRS Error Code [F990PF-006-01]:

Rejection Message:
If the domestic foundation meets the requirement of the Section 4940(e) and has initial returns, then the foundation doesn’t qualify for the Reduced Tax on Net Investment Income based on the adjusted qualifying distributions and the net value of the non-charitable use assets for years starting from the current year to past five years.

What does it mean:
The IRS has rejected the return since the organization is filing its initial return and doesn’t qualify for the Reduced Tax on Net Investment Income under Section 4940(e)

Resolution:
Here's how you correct the organization's choice on Qualification Under Section 4940(e):

  1. Log in to your ExpressTaxExempt account.
  2. Identify the rejected return either from the Dashboard or Forms History.
  3. To identify it from the Dashboard, keep a note of the Return ID of the rejected return that you find in the rejection email.
  4. To identify it from the Forms History page, click the Tax Returns on the menu, and you'll land in the Forms History page, where you'll find the rejected return listed.
  5. 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-006-01.
  6. Based on the filing type you have chosen, you will be navigated to the corresponding page.
    • Interview-based filing - You'll be directed to Qualification Under Section 4940(e) page. Under "Qualification Under Section 4940(e)", select NO.
    • Form-based filing - You'll be directed to Part V of Form 990-PF. Here, select No to state that the foundation qualifies under section 4940(e)
  7. Follow the subsequent steps as prompted.
  8. Review the details, and click the Transmit button to re-transmit your return to the IRS at no additional cost.

For any further assistance, we recommend contacting the IRS e-Help Desk Toll-Free Number 1-866-255-0654.

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