Qualifying distributions made directly for the active conduct of exempt activities must have a value [F990PF-036-01] - How do I resolve it?
93 views | Last modified 5/7/2024 7:20:13 AM EST |

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

IRS  Error code: Form 990-PF: [F990PF-036-01]

Rejection Message: 

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 2016 or the taxable year beginning in 2016, then the Qualifying distributions made directly for the active conduct of exempt activities of the Private Operating Foundation must have a value.

What does it mean:

The organization that claims the status as a private operating foundation within the meaning of section 4942(j)(3) or 4942(j)(5) must not have provided a value for the Qualifying distributions made directly for the active conduct of exempt activities of the Private Operating Foundation. In this case, the IRS would have rejected the return.

Resolution:

Your organization must provide a value for the Qualifying distributions made directly for the active conduct of exempt activities of the Private Operating Foundation.

Follow the steps to resolve the error:

  1. From the home page, select the organization and the tax year.
  2. You need to click on the Rejected by the IRS button for the rejected return to find the list of errors. Then, click the Fix Me button to resolve the rejection error. 
  3. 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. On this page, provide the required information so that the field Qualifying distributions made directly for the active conduct of exempt activities consist of a value.
    • Form-based filing - You'll be directed to Part XIV, Line 2e of Form 990-PF. Here, you are required to calculate and provide a value for Qualifying distributions made directly for active conduct of exempt activities.
  4. 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.

Was this helpful? Yes No

Tax990 Support

Need more help?

Get in touch with our dedicated support team Contact Us