[E-file Error Code F990PF-035-01] How do I resolve it?
96 views | Last modified 4/15/2021 3:42:38 AM EST | Added by ExpressTaxExempt Team

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

IRS Error Code F990PF-035-01

If the foundation is claiming the status as a private operating foundation within the meaning of section 4942(j)(3) or 4942(j)(5) for the calendar year 2019 or the taxable year beginning in 2019, then you must enter the lesser of the adjusted net income of Analysis of Revenue And Expenses or the minimum investment return of each year for the Private Operating Foundation.

What does it mean:

For a foundation described under Section 4942(j)(3) or 4942(j)(5) for the calendar year 2019 or the taxable year beginning in 2019, the value of lesser of the adjusted net income of Analysis of Revenue And Expenses or the minimum investment return of each year for the Private Operating Foundation must be provided.

Resolution:

If your private foundation meets the requirement of Section 4942(j)(3) or 4942(j)(5), provide the value of lesser of the adjusted net income of Analysis of Revenue And Expenses or the minimum investment return of each year for the Private Operating Foundation.

Here's how to report Adjusted Net Income

  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-035-01.
  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 the Adjusted Net Income & Qualifying Distributions page, under the Private Operating Foundations section. Here, the organization must provide the appropriate details to calculate Adjusted Net Income & Qualifying Distributions' value.
    • Form-based filing - You'll be directed to Part XIV, Line 2a of Form 990-PF. Here, provide the adjusted net income value for the tax year.
  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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