Tax990 Knowledge Base

Investment Return Mismatch [F990PF-007-01] - How do I resolve it?

IRS  Error code: Form 990-PF: [F990PF-007-01]

Rejection Message: 

If the domestic foundation meets the requirement of the Section 4940(e), the net value of the noncharitable-use assets for the current year of the Qualification Under Section 4940(e) for Reduced Tax on Investment Income must be equal to the net value of noncharitable-use assets of the Minimum Investment Return.

What does it mean:

For the foundation that met the requirement of Section 4940(e), the net value of the noncharitable-use assets of the Qualification Under Section 4940(e) for Reduced Tax on Investment Income doesn't match the net value of noncharitable-use assets of the Minimum Investment Return.

Resolution:

If your private foundation meets the requirement of Section 4940(e), make sure the net value of the noncharitable-use assets of the Qualification Under Section 4940(e) for Reduced Tax on Investment Income matches the net value of noncharitable-use assets of the Minimum Investment Return.

We'll keep you informed on the status of the return once we hear back from the IRS.

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