[E-file Error Code F990PF-040-02] How do I resolve it?
15 views | Last modified 4/13/2021 3:38:41 AM EST | Added by ExpressTaxExempt Team

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

IRS Error Code F990PF-040-02

If the foundation is a Section 501(c)(3) exempt private foundation or Section 4947(a)(1) nonexempt charitable trust and had at least $5,000 of total assets in the end of year book value in the Balance Sheets section, then at least one contributions, gifts, grants paid must be added in the Operating and Administrative Expenses section.

What does it mean:

The foundation that claims the status as a private operating foundation within the meaning of Section 501(c)(3) or Section 4947(a)(1) nonexempt charitable trust and had at least $5,000 of total assets in the end of year book value in the Balance Sheets section) must not have provided information on the contributions, gifts, grants paid for the tax year. In this case, the IRS would have rejected the return.

Resolution:

Your foundation must provide information on the payment for any contributions, gifts, grants to various individuals and organizations in the current tax year.

Here's how to report payment for contributions, gifts, grants

  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-040-02.
  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 the Contributions, Gifts, Grants Paid page. On this page, select Yes for the question, "Did your organization make payment for any contributions, gifts, grants?" and provide information on those contributions.
    • Form-based filing - You'll be directed to Part I, Line 25 of Form 990-PF. Here, you must provide information on the payment made by the organization for contributions, gifts, and grants
  7. 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.

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