Tax990 Knowledge Base

Investment Income Error [F990PF-012-01] - How do I resolve it?

IRS  Error code: Form 990-PF: [F990PF-012-01]

Rejection Message: 

If the domestic foundation meets the section 4940(e) requirements of the Qualification Under Section 4940(e) For Reduced Tax On Investment Income, then the total amount of the Qualification Under Section 4940(e) for Reduced Tax on Net Investment Income must be greater than or equal to the Qualifying Distribution.

What does it mean:

For the foundation that met the requirement of Section 4940(e), the total amount of the Qualification Under Section 4940(e) for Reduced Tax on Investment Income must be greater than or equal to the Qualifying Distribution.

Resolution:

If your private foundation meets the requirement of Section 4940(e), make sure the total amount of the Qualification Under Section 4940(e) for Reduced Tax on Investment Income is greater than or equal to the Qualifying Distribution.

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