Organization did not provide initiation fees and capital contributions [F990EZ-021-01] - How do I resolve it?
37 views | Last modified 5/4/2024 3:49:46 AM EST |

IRS Error Code - F990EZ-021-01
Since your organization is classified under the 501(c)(7) section, Initiation fees and capital contributions included on Revenue are required.

What does it mean:

If your organization is exempt under Section 501(c)(7) and you have not included the Initiation Fees and Capital Contributions as Revenue in your 990 return, the IRS can reject the return.

Resolution:
Provide information on the Initiation fees and capital contributions and retransmit your return.

Here's how to report Initiation fees and capital contributions

  • From the dashboard, select the organization and the tax year.
  • You need to click on the 'Rejected by the IRS' button to find the list of errors for the rejected return. Then, click the 'Fix Me' button to resolve the rejection error. 
  • Based on the filing type you have chosen, you will be able to navigate to the corresponding page.
    • Interview-based filing - You'll be directed to the Other Information page. Here enter the value in the Initial fees and capital contributions field. 
    • Form-based filing - You'll be directed to Part V, Line 39a of Form 990-EZ. In this line, enter the Initiation fees and capital contributions.
  • Review the details, and click the Transmit button to re-transmit your return to the IRS at no additional cost.

Note: We'll update you 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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